An Investor Has $150,000 to Invest in Two Types of Investments

question 52

Multiple Choice

An investor has $150,000 to invest in two types of investments. Type A pays 5% annually and type B pays 6% annually. To have a well-balanced portfolio, the investor imposes the following conditions. At least one-third of the total portfolio is to be allocated to type A investments and at least one-third of the portfolio is to be allocated to type B investments. What is the optimal amount that should be invested in each investment?

• A) $60,000 in type A (5%), $90,000 in type B (6%)
• B) $0 in type A (5%), $150,000 in type B (6%)
• C) $150,000 in type A (5%), $0 in type B (6%)
• D) $100,000 in type A (5%), $50,000 in type B (6%)
• E) $50,000 in type A (5%), $100,000 in type B (6%)

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Definitions:

Social Impact

A sociometric measure that is computed by adding the total number of nominations a child receives from her peers, both positive and negative, which indicates the degree to which a child gets noticed within her group.

Sociometric Categories

The classification of individuals within a group based on social preferences, acceptance, and rejection.

Neglected Children

Children who do not receive adequate care, supervision, or emotional nurturing from their guardians.

Positive Nominations

Involves acknowledging individuals or entities for recognition or awards, often related to achievements or contributions.