Business, 31.03.2021 02:20 cupcake122016

The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments together with annual rates of return are as follows:. Type of Loan/InvestmentAnnual Rate of Return (%)
Automobile loans8
Furniture loans10
Other secured loans11
Signature loans12
Risk-free securities9
The credit union will have $2 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments:
• Risk-free securities may not exceed 30% of the total funds available for investment.
• Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans).
• Furniture loans plus other secured loans may not exceed the automobile loans.
• Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.
How should the $2 million be allocated to each of the loan/investment alternatives to maximize total annual return?
Type of Loan/InvestmentFund Allocation
Automobile loans$
Furniture loans$
Other secured loans$
Signature loans$
Risk-free securities$
What is the projected total annual return?
Annual Return = $

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 12:40

When cell phones were first entering the market, they were relatively large and reception was undependable. all cell phones were essentially the same. but as the technology developed, many competitors entered, introducing features unique to their phones. today, cell phones are only a small fraction of the size and weight of their predecessors. consumers can buy cell phones with color screens, cameras, internet access, daily planners, or voice activation (and any combination of these features). the history of the cell phone demonstrates what marketing trend?

Answers: 3

Answer

Business, 22.06.2019 13:40

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.

Answers: 1

Answer

Business, 22.06.2019 22:00

The company is experiencing an increase in competition, and at the same time they are building more production facilities in southeast asia. in this scenario, the top management team is most likely to multiple choice increase the cost of their products. restructure to reflect a more bureaucratic, stable organization. pull decision-making responsibility from low-level management, taking it on themselves. give lower-level managers the authority to make decisions to benefit the firm. rid themselves of all buffering product.

Answers: 3

Answer

Business, 23.06.2019 00:00

How much is a 2019 tesla? ? exact price trying to buy for my 6 year old sister

Answers: 2

Answer

You know the right answer?

The employee credit union at State University is planning the allocation of funds for the coming yea...

Questions