Aprivate investment club has $400,000 earmarked for investment in stocks. to arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high-risk, medium-risk, and low-risk. management estimates that high-risk stocks will have a rate of return of 14%/year; medium-risk stocks, 9%/year; and low-risk stocks, 7%/year. the members have decided that the investment in low-risk stocks should be equal to the sum of the investments in the stocks 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 $36,000/year on the total investment. (assume that all the money available for investment is invested.)

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.