Business, 05.05.2020 05:06 barattah

Dave has $100,000 to invest in 10 mutual fund alternatives with the following restrictions. • For diversification, no more than $25,000 can be invested in any one fund. • If a fund is chosen for investment, then at least $10,000 will be invested in it. • No more than two of the funds can be pure growth funds • At least one pure bond fund must be selected. • The total amount invested in pure bond funds must be at least as much as the amount invested in pure growth funds. Fund Type Expected Return (%) 1 Growth 6.70% 2 Growth 7.65% 3 Growth 7.55% 4 Growth 7.45% 5 Growth & Income 7.50% 6 Growth & Income 6.45% 7 Growth & Income 7.05% 8 Stock & Bond 6.90% 9 Bond 5.20% 10 Bond 5.90% Using the following expected returns, formulate and solve a model that will determine the investment strategy that will maximize expected annual return.

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Dave has $100,000 to invest in 10 mutual fund alternatives with the following restrictions. • For di...