ITC is an Investment company that has $5 million to invest. For this particular investment, the company has six fund potions available to invest in. The table below provides the expected return for each of the investment as well as a proprietary risk score (lower number=less risk) which measures how risky each investment is , while the company wants to earn maximum return it can for its investors , it also has an obligation to diversify its investment selections in order to reduce its risk exposure to any one type of investment. to meet the diversification reuirements the company must satisfy the following criteria.
| Investment |
interest earned |
risk score |
| Trade Credits |
7% |
1.7 |
| Corporate bonds |
10% |
1.2 |
| Gold Stocks |
19% |
3.7 |
| Platinum Stocks |
12% |
2.4 |
| Mortgage Securities |
8% |
2.0 |
| Construction Loans |
14%2.9 |
|