Formulate but Do Not Solve the Problem. ​

question 147

Multiple Choice

Formulate but do not solve the problem. ​
A private investment club has $600,000 earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high-risk, medium-risk, and low risk. Management estimates that high-risk stocks will have a rate of return of 15%/year; medium-risk stocks, 12%/year; and low risk stocks, 5%/year. The members have decides that the investment in medium-risk stocks should be equal to the sum of the investments in the stocks of the other two categories. Determine how much the club should invest in each type of stock if the investment goal is to have a return of $60,000/year on the total investment. (Assume that all the money available for investment is invested) . Let x be the amount of money invested in high-risk stocks, y be the amount of money invested in medium-risk stocks, and z be the amount of money invested in low-risk stocks.
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Definitions:

Claims Audit

An examination and verification of claims made under insurance policies or benefit programs to ensure accuracy and compliance.

Blended Benefit Programs

Employee benefit plans that combine elements of traditional and flexible benefits to offer a customized approach to employee compensation and welfare.

Cafeteria Benefit Programs

Flexible benefit plans allowing employees to choose from a range of benefit options tailored to their specific needs.

Equity Benefit Programs

Benefits strategies designed to ensure fair treatment and opportunities for all employees, often by addressing needs specific to certain groups.