Set up trust fund children using portion of the money


George Johnson currently inherited the large sum of money; he wishes to use the portion of the money to set up the trust fund for two children. Trust fund has 2 investment options: (i) bond fund and (ii) stock fund. Projected returns over life of investments are 6% for bond fund and 10% for stock fund. Whatever portion of inheritance he ultimately make decision to commit to trust fund, he wishes to invest at least 30% of that amount in bond fund. Additionally, he wishes to choose the mix which will allow him to get the total return of at least 7.5%. Solve  problem using the graphical solution procedure.

 

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Mathematics: Set up trust fund children using portion of the money
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