Return on Investments Research Paper
Heinlein and Krampf Brokerage firm has just been instructed by one of its clients to invest $250,000 for her money recently obtained through the sale of land holdings in Ohio. The client has a good deal of trust in the investment house, but she also has her own ideas about the distribution of the funds being invested. In particular, she requests that the firm selects whatever stocks and bonds they believe are well rated, but within the following guidelines: 1. Municipal bonds should comprise at least 20% of the investment. 2. At least 40% of the funds should be placed in a combination of electronics firms, aerospace firms, and drug manufacturers. 3. No more than 50% of the amount invested in municipal bonds should be placed in a high-risk, high-yield nursing home stock. Subject to these restraints, the clients goal is to maximize projected return on investments. The analysts at Heinlein and Krampf, aware of these guidelines, prepare a list of quality stocks and bonds and their corresponding rates of return. ______________________________________________ Projected rate Investment of return (%) ______________________________________________ projected rate: Investment of return: Los Angeles Municipal Bonds- 5.3 Thompson Electronics, Inc. 6.8 United Aerospace Corp. 4.9 Palmer Drugs 8.4 Happy Days Nursing Home- 11.8 ______________________________________________
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