Investment
An investment advisor has at his disposal two types of investments for clients: conservative investment A, which provides an annual return of 8%, and riskier investment B with an annual return of 24%. The client can distribute his investment between the two so as to achieve a total return between 8% and 24%. However, the higher the returns, the higher the risk. How should each of the following clients distribute his investment to achieve the stated return?
Total investment client 1: 20 000€, client 2: 50 000€, client 3: 10 000€
Required annual return Client 1: 2 400€ (12%), Client 2: 7 500€ (15%), Client 3: 1 300€ (13%).
Total investment client 1: 20 000€, client 2: 50 000€, client 3: 10 000€
Required annual return Client 1: 2 400€ (12%), Client 2: 7 500€ (15%), Client 3: 1 300€ (13%).
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