Find how much club must invest in every kind of stock


The private investment club has $200,000 embarked for investment in stocks. To arrive at the acceptable overall level of risk, stocks which management is considering have been categorized into 3 catergories: high-risk, medium-risk, and low-risk. Management evaluates that high-risk stocks will have the rate of return of 15%/year; medium-risk stocks, 10%/year; and low-risk stocks, 6%/year. Members have made decision that investment in low-risk stocks must be equal to sum of investments in stocks of other two categories. Find how much club must invest in every kind of stock if investment goal is to have the return of $20,000/year on total investment. (Suppose that all money available for investment is invested.)"

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Mathematics: Find how much club must invest in every kind of stock
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