A man would like to invest $50,000 in government bonds and stocks that will give an overall annual return of about 5%. The money to be invested I government bonds will give an annual return of 4.5% and the stock of about 6%. The investments are in units of 100 each. If he desires to keep his stock investment to minimum order to reduce his risk, determine how many government bonds and how stocks should he purchase?

A man would like to invest $50,000 in government bonds and stocks that will give an overall annual return of about 5%. The money to be invested I government bonds will give an annual return of 4.5% and the stock of about 6%. The investments are in units of 100 each. If he desires to keep his stock investment to minimum order to reduce his risk, determine how many government bonds and how stocks should he purchase?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 63P

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