An investor has $ 500000 to spend. There investments are being considered, each having an expected annual interest rate. The interest rates are 15, 10 & 18 percent respectively. The investor`s goal is an average return of 15 percent in the three investments. Because of the high return on investment alternatives, the investor wants the amount in this alternative to equal 40 percent of the total investment. Determine whether there is a meaningful investment strategy which will satisfy these requirements. (BY Crammer Rule)

Respuesta :

that's a lot of money and words. I don't appreciate this. I would probably just break down and cry tbh

The investment strategy that can be employed to fulfill the requirements of the given investor would be as follows:

- Growth Investing

  • "Growth Investing" is characterized as the strategy that lays emphasis on enhancing the capital amount significantly.
  • In the given situation, the requirements of the investor primarily include average return with a considerable hike in the amount invested by him i.e. capital(40%).
  • Therefore, 'growth investing' would be the most suitable option for him.

Learn more about "Crammer Rule" here:

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