You Have $450,000 and Are Considering Investing in Three Municipal

question 126

Essay

You have $450,000 and are considering investing in three municipal bond funds, Pimco, Fidelity Spartan, and Columbia Oregon. You have the following data:
$$\begin{array} { | c | c | } \hline \text { Company } & \text { Yield } \\\hline \text { PNF (Pimco NY) } & 7 \% \\\hline \text { FDMMX (Fidelity Spartan Mass) } & 5 \% \\\hline \text { CMBFX (Columbia Oregon) } & 4 \% \\\hline\end{array}$$
Your broker has made the following suggestions:
At least 50 percent of your total investment should be in CMBFX.
No more than 10 percent of your total investment should be in PNF.
How much should you invest in each fund to maximize your anticipated returns while following your broker's advice
$__________ in PNF, $__________ in FDMMX, and $__________ in CMBFX.

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Definitions:

LDCs

Acronym for Less Developed Countries, referring to countries with lower levels of economic development and standard of living.

Average Workweek

The typical number of hours worked in a week by employees in a particular sector or economy.

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An increase in the amount of goods and services produced per head of the population over a period of time.

Population Growth

Population growth refers to the increase in the number of individuals in a population, commonly measured as the percentage change in population over a specific period.