SOLUTION: An investor has up to N$450,000 to invest in three types of investments. Type A pays 6% annually and has a risk factor of 0. Type B pays 10% annually and has a risk factor of 0.06.

Question 1148054: An investor has up to N$450,000 to invest in three types of investments. Type A pays 6% annually and has a risk factor of 0. Type B pays 10% annually and has a risk factor of 0.06. Type C pays 12% annually and has a risk factor of 0.08. To have a well-balanced portfolio, the investor imposes the following conditions. The average risk factor should be no greater than 0.05. Moreover, at least one-half of the total portfolio is to be allocated to Type A investments and at least one-fourth of the portfolio is to be allocated to Type B investments. How much should be allocated to each type of investment to obtain a maximum return?
Answer by ikleyn(52802) (Show Source): You can put this solution on YOUR website!
.

This problem is for 3 independent variables (and can not be reduced to 2 variables),
so it is significantly above the typical high School level.

If you learn Linear Programming method at the College or University, then your educational institution should provide you
with an appropriate software / solver.

Use it . . .

RELATED QUESTIONS
An investor has up to $250,000 to invest in three types of investments. Type A pays 8%... (answered by Theo)

I really need any help at all with these questions, it's okay if you can't answer all any (answered by Theo)

An investor has $50,000 to invest in three types of bonds: short-term, intermediate-term, (answered by ikleyn)

Formulate a system of equations for the situation below and solve. A private investment... (answered by mananth,MathTherapy)

An investor has $50,000 to invest in three types of bonds: short-term, intermediate-term, (answered by richwmiller)

An investor has $100,000 to invest in three types of bonds: short-term,... (answered by richwmiller)

An investor has $39,000 to invest in three types of bonds: short-term, intermediate-term, (answered by greenestamps)

A private investment club has $500,000 earmarked for investment in stocks. To arrive at... (answered by Theo)

Formulate a system of equations for the situation below and solve. A private investment... (answered by Theo,MathTherapy)