Janie had just won a prize money worth GHS 100,000 and would like to invest it for a rainy day. In order to reduce the level of risk on her investments, she has been advised to diversify her investments. She has the option of investing in three different assets – Asset 1 which yields an interest of 10% annum, Asset 2 which yields an interest of 12% per annum and Asset 3 which yields an interest of 8% per annum. Due to the high risk nature of Assets 1 and 2, Janie is advised to invest not more than 60% of the total amount of the money in Assets 1 and 2. Janie would want to ensure that she earns returns that will be at exactly 6% of her investment. Formulate the mathematical equations or inequalities that will afford the chance Janie to meet her requirements.

An investor has $500,000 to spend. Three alternative investments have been identified, earning 15%, 10% and 18%, respectively. A goal has been set to earn average return of 15% on the total investment. In investment alternative 3, the investor invests 30% of the total investment. Determine the amount of money which should be invested in each option to satisfy the requirements of the investor.

Analyze the scenarios below and decide what type of investors is given in the scenario.  Choices are given below:Mrs. Santos decided to invest her P 500,000 in a bonds issued by Jollibee Foods Corporation rather than invest it in a regular savings account.*Risk-Neutral InvestorsRisk-Averse InvestorsRisk - Taker Investors

There are three portfolios and a risk-free asset (i.e., T-bill). A: E()=4% p.a.,STD=10% p.a. B: E(r)=6% p.a., STD=15% p.a. C: E()=8% p.a.,STD=20% p.a. T-bill: E()=1%p.a.STD=0% p.a. rho(AB) = 1.0: ho(AC) = 0.2 rho(B,C) =0.2, in which rho is the correlation coefficient between two return series. Whichportfolio (A, B, or C) yields the highest ratio of risk-premium/standard deviation (i.e., the reward-to-volatility ratio)?Select one:

Tavius wants to invest $2,500. Which option will earn him the best value?A.A savings account with 3 percent simple interest.B.A three-year certificate of deposit with a nominal interest rate of 4 percent.C.A savings account with 3 percent interest compounded annually.D.A two-year certificate of deposit with a nominal interest rate of 3 percent.SUBMITarrow_backPREVIOUS

In an Investment arrangement the profit must be shared………………….