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Module SixHomework Question

Module SixHomework Question

  1. (P6-35) Theo Harris earns $55,000 a year and has $9,000 to invest in a portfolio. His investment alternatives and their expected returns are shown in the table below.
Investment Description Expected Return
A IRA (retirement) 3.5%
B Employer’s retirement plan 4.5%
C Deferred income (retirement) 8.0%
D Unity mutual fund 7.0%
E Liberty mutual fund 7.5%
F Money market 5.5%

Theo’s investment goals are as follows and can be ranked according to the weights shown inparenthesis. Which investments should be included in Theo’s portfolio, and how much should he invest in each?

Goal 1: (25) Invest all funds available.

Goal 2:(20) Maximize the total annual return in dollars, with a target of $1,000.

Goal 3:(15) Invest at least 3% of salary in employer’s retirement plan.

Goal 4:(15) Invest at least 10% of the total investment in the money market.

Goal 5:(10) Invest at most 25% of the total investment in retirement plans.

Goal 6:(10) Invest at least 50% of the total investment in non-retirement plans.

Goal 7:(5) Invest at most 50% of the total investment in mutual funds.

Which investments should be included in Theo’sportfolio?

The Answer

Invest $1,650 in investment B, $600 in investment C, $4,500 in investment E and $2,250 in investment F. Return is $583.50. Goals 1, 3, 5 and 7 are fully met. Goal 2 is underachieved by $416.50. Goal 4 is overachieved by $1,350. Goal 6 is overachieved by $2,250.

 
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Theo’s portfolio

  • I don’t need the problem solved, I want to know how did this person come up with this answer from this question? 

If we remove the goal 7, we see that the Return is increased to $610.5.

If we remove the goal 6, 7, we see that the Return is increased to $610.5.

If we remove the goal 5,6,7, we see that the Return is increased to $639.75.

If we remove the goal 4,5,6,7, we see that the Return is increased to $662.25.

If we remove the goal 3,4,5,6,7, we see that the Return is increased to $720.

My book said the answer was below, was his answer correct above or the book someone please explain. I just want to know why there are two answers. 

The Answer

Invest $1,650 in investment B, $600 in investment C, $4,500 in investment E and $2,250 in investment F. Return is $583.50. Goals 1, 3, 5 and 7 are fully met. Goal 2 is underachieved by $416.50. Goal 4 is overachieved by $1,350. Goal 6 is overachieved by $2,250.

  • Theo Harris earns $55,000 a year and has $9,000 to invest in a portfolio. His investment alternatives and their expected returns are shown in the table below.
InvestmentDescriptionExpected Return
AIRA (retirement)3.5%
BEmployer’s retirement plan4.5%
CDeferred income (retirement)8.0%
DUnity mutual fund7.0%
ELiberty mutual fund7.5%
FMoney market5.5%

Theo’s investment goals are as follows and can be ranked according to the weights shown in parenthesis. Which investments should be included in Theo’s portfolio, and how much should he invest in each?

Goal 1: (25) Invest all funds available.

Goal 2: (20) Maximize the total annual return in dollars, with a target of $1,000.

Goal 3: (15) Invest at least 3% of salary in employer’s retirement plan.

Goal 4: (15) Invest at least 10% of the total investment in the money market.

Goal 5: (10) Invest at most 25% of the total investment in retirement plans.

Goal 6: (10) Invest at least 50% of the total investment in non-retirement plans.

Goal 7: (5) Invest at most 50% of the total investment in mutual funds.

Which investments should be included in Theo’s portfolio?

 
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Query operators

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Hi, I need help with SQL. I have some errors every time I try run the code. ATTACHMENT PREVIEW Download attachment

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Query operators A sqi—‘i—4.sq1 file has been created and opened for you. Write the following SQL statement 1. Select all the records from the : ‘lnasic__inFo_ table
Where birthdays are less or equal to 2016 Get the records only ‘rfthe id is between 1 and 5
Order by id in a descending order Complement your SQL’ S’EL’ECT ‘ understanding by writing
the following statements in the sq’1—1’—’8.sq_l ‘file: 1.
2. 3. Use the directory database Select all the co-panyjtot’ilesi records where
conpany_na_l_e is equal to Lore! _Ipsu_l Institute or_ Et
LLP :; Finally, select only the id _and ‘phonngum’ attributes
from the _c_oi11_pany_prof.il._e_s__ table and get the records
where the _id ‘ is between 40 and 60 A sql—‘I—9.5q1 ‘file has been created and opened for you. Write the following query in the _sqi—1—9.5q1 ‘file {write each task in a new line}: 1.
2. Use the; directory database Display the available tables . Select all the records from the colpany_profi1e5 ‘table that match the id: 2? Select only the id and phone_num columns ofthe
company_prolf.iil_.es table and sort them by Ed in
ascending order Select only the id and company_name columns from
the3 company_pr_of:_iles where the id is greater or equal
to 40. lJmit the results to 5 rows.

 
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CHALLENGE DATABASE

Hi, I need help with SQL code, I can’t fix my errors.

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 ATTACHMENT PREVIEW Download attachment

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3. 5. Challenge Eyou make a mistake while editing the database in this secion or just want to reset the database back to its original state, return to this page and click the IIReset Section Database" button below. RESET CHALLENGE DATABASE Creating tables A rlysql prompt has been opened for you.
Complete the following tasks: 1. Override the dug_breeds database 2. Use the d0g_b reeds database and create a dog_catalog table with the following
features:
Columns:
id : [uteger(4) not NULL and auto increment from 1
breed :Vaxcha:(255) region :Varchar(255)
Prilnary key’ is the id column

 
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