Homework Help Question & Answers

An investor is considering three types of investments: a high-risk venture into oil leases with a potential return of 15%, a medium-risk investment in stocks with 9% return, and a relatively safe bond investment with a 5% return

An investor is considering three types of investments: a high-risk venture into oil leases with a potential return of 15%, a medium-risk investment in stocks with 9% return, and a relatively safe bond investment with a 5% return. He had $50,000 to invest. Because of the risk, he will limit his investment in oil leases and stocks to 30% and his investment in oil leases and bonds to 50%. How much should he invest in each to maximize his return, assuming investment returns are as expected?
0 0
Next > < Previous
Answer

This Homework Help Question: "An investor is considering three types of investments: a high-risk venture into oil leases with a potential return of 15%, a medium-risk investment in stocks with 9% return, and a relatively safe bond investment with a 5% return" No answers yet.

Be the First!

Request Answer

Request answer!

We need 3 more requests to produce the answer to this homework help question. Share with your friends to get the answer faster!

0 /3 have requested the answer to this homework help question.

Request! (Login Required) Share with friends


Once 3 people have made a request, the answer to this question will be available in 1-2 days.
All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer of:
An investor is considering three types of investments: a high-risk venture into oil leases with a potential return of 15%, a medium-risk investment in stocks with 9% return, and a relatively safe bond investment with a 5% return
Your Answer: Your Name: What's your source?
Similar Homework Help Questions
  • an investor is considereing three types of investment: a high-risk venture into oil leases with a potential return of 15%, a medium risk investment in bonds with a 9% return, and a relatively safe stock investment with a 5% return

    an investor is considereing three types of investment: a high-risk venture into oil leases with a potential return of 15%, a medium risk investment in bonds with a 9% return, and a relatively safe stock investment with a 5% return. He has $50,000 to invest. Because of the risk; he will limit his investment in oil leases and bonds to 30% and his investment in oil leases and stock to 50%. How much should he incest in each to maximize...

  • A private investment club has $175,000 e been classified into three categories: high-risk, medium-risk, and low-risk....

    A private investment club has $175,000 e been classified into three categories: high-risk, medium-risk, and low-risk. Management estimates t stocks, 10%/year, and low-risk stocks, 6%/year. The members have 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 $17,500/year on the total for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have hat...

  • CDs are a very safe investment because they are usually insured by the U.S. government. (There...

    CDs are a very safe investment because they are usually insured by the U.S. government. (There are some CDs that are not insured so it is important to always check!) Because they are so safe, CDs earn low rates of interest. The amount earned on an investment is often called the return. In general, investments with higher risk also have the potential for higher rates of return. For example, if you invest in a stock, which is like buying a...

  • sation) The Financial Advisor's Investment Case High-Yield Securities and Relative Risk Stephanie Wald sultant has blossom...

    sation) The Financial Advisor's Investment Case High-Yield Securities and Relative Risk Stephanie Wald sultant has blossom each bond has the same rating, it seems reason- able to conclude that the probability of default is about the same for each bond. However, there may be considerable difference in their price volatility. Waldron has asked you to rank each bond from the least to the most price volatile. She also wants you to compare the bonds' price volatility with the triple-A-rated bonds...

  • 5. Portfolio risk and return Aa Aa Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in eac...

    5. Portfolio risk and return Aa Aa Ariel holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Beta Standard Deviation Investment Perpetualcold Refrigeration Co. (PRC) $2,625 0.80 12.00% Zaxatti Enterprises (ZE) $1,500 1.30 11.50% Western Gas & Electric Co. (WGC) $1,125 1.15 16.00% Makissi Corp. (MC) $2,250 0.40 19.50% Suppose all stocks in Ariel's portfolio were equally Suppose all stocks in the...

  • MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text?...

    MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text? A) a certificate of deposit issued by a bank B) a new automobile C) a United States Saving Bond D) a mutual fund held in a retirement account 2) Which of the following is NOT traded in the securities markets? A) stocks B) bonds C) derivatives D) real estate 3) The governmental agency that oversees the capital markets is the A) Federal Trade Commission....

  • Dropdown options: 1-risk/return 2-equal to/greater or less than 3-self contained/stand-alone 4-variance/standard deviation 5-variance/beta coefficient 6-diversifiable/non-diversiable 7-is/...

    Dropdown options: 1-risk/return 2-equal to/greater or less than 3-self contained/stand-alone 4-variance/standard deviation 5-variance/beta coefficient 6-diversifiable/non-diversiable 7-is/ is not 8-diversifiable/non-diversifiable 9-random/non random 10-decreasing/increasing 11-2000+/500 12-reduces/increases 13-systematic of market/unsystematic or company-specific 14-diversifiable/non diversifiable 1. Basic concepts - Risk and return Professor Isadore (Izzy) Invest-a-Lot retired two years ago from Exceptional College, a small liberal arts college in North Carolina after teaching corporate finance and investment theory for 35 years. Yesterday, Izzy appear on EC LIVE, a television show produced for the students,...

  • 1.  Tim Smith is shopping for a used luxury car. He has found one priced at...

    1.  Tim Smith is shopping for a used luxury car. He has found one priced at $36,000. The dealer has told Tim that if he can come up with a down payment of $5,500​, the dealer will finance the balance of the price at a 8​% annual rate over 2 years (24 months).  ​(Hint: Use four decimal places for the monthly interest rate in all your​ calculations.) a.  Assuming that Tim accepts the​ dealer's offer, what will his monthly​ (end-of-month)...

  • SOMEONE PLEASE HELP ME :( I AM SO LOST

    SOMEONE PLEASE HELP ME :( I AM SO LOST. I HAVE READ MY BOOK AND STILL CONFUSED. I HAVE TWO PROBLEMS BELOW AND EACH HAS ONE PART. THERE ARE SEVERAL MORE BUT I DON'T WANT TO ASK FOR TOO MUCH. PLEASE HELP ME ON THESE TWO. MY TEACHER SAID IT IS SIMPLE AND THAT IS WHY HE WON'T BE ABLE TO HELP ME. HE KEPT ON TELLING ME TO KEEP ON READING THE BOOK. IT'S ALMOST DUE TIME AND I...

  • please i need geniune answers no guest work will rate only when have the scores.

    (1) If your goal is determine how effectively a firm is managing its assets, which of the following sets of ratios would you examine? (Points : 5)(a) profit margin, current ratio, fixed charge coverage ratio(b) quick ratio, debt ratio, time interest earned(c) inventory turnover ratio, days sales outstanding, fixed asset turnover ratio(d) total assets turnover ratio, price earnings ratio, return on total assets(e) time interest earned, profit margin, fixed asset turnover ratio2. An analysis of a firm's financial ratios over...

Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
Share Your Knowledge

Post an Article
Post an Answer
Post a Question with Answer

Self-promotion: Authors have the chance of a link back to their own personal blogs or social media profile pages.