You are an investor who wants to maximize your profits, and to avoid risks of loss, you have diversified your money by investing it in 5 different banks Banco Azteca, Banamex, Inbursa, Banorte and Santander. Each of the banks has created its investment funds also diversified in simple interest instruments (fixed term), compound interest (investment accounts), annuities (short-term payroll loans), bonds (cetes) and paper money (dollars). You decided to invest in: Banco Azteca $5000, Banamex $10000, Inbursa $7000, Banorte $8500 and Santander $20000. Leaving you with $3,700, of the sum of the remaining uninvested cash flow, for daily unforeseen events. Banks offer you the following investments that combine several investment instruments. Investment portfolios: You must create a combination of 3 of the 5 investment portfolios, which maximizes your investment in 2 years. What should those three portfolios be and how much should you invest in each of them?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You are an investor who wants to maximize your profits, and to avoid risks of loss, you have diversified your money by investing it in 5 different banks Banco Azteca, Banamex, Inbursa, Banorte and Santander. Each of the banks has created its investment funds also diversified in simple interest instruments (fixed term), compound interest (investment accounts), annuities (short-term payroll loans), bonds (cetes) and paper money (dollars). You decided to invest in: Banco Azteca $5000, Banamex $10000, Inbursa $7000, Banorte $8500 and Santander $20000. Leaving you with $3,700, of the sum of the remaining uninvested cash flow, for daily unforeseen events. Banks offer you the following investments that combine several investment instruments. Investment portfolios: You must create a combination of 3 of the 5 investment portfolios, which maximizes your investment in 2 years. What should those three portfolios be and how much should you invest in each of them?

INVESTMENT
$ 5,000.00
$ 10,000.00
santander
$ 20,000.00
inbursal $ 7,000.00
banorte $ 8,500.00
SUM
$ 50,500.00
flujo de fectivo $ 3,700.00
BANK
azteca
banamex
INVESTMENT PORTOFOLIO OR FUND
BCOAZ1
BNMX31
STDR20
INB5500
BNRT57
SUMA
SIMPLE INTEREST (FIXED TERM)
COMPOUND INTEREST (INVESTMENT ACCOUNT)
ANNUITIES (SHORT-TERM PAYROLL LOAN)
BONDS (CETES)
PAPER CURRENCY (DOLLARS)
COMPOSITION IN PERCENTAGE
FIXED TERM INVESTMENT ACCOUNT LOAN
7%
12%
21%
38%
20%
98%
9%
22%
18%
10%
30%
89%
RATE
24%
42%
12%
6%
9%
93%
PERIOD
3% QUARTERLY
7% ANNUAL
15% MONTHLY CONVERTIBLE $
2.98% MONTHLY
0.10% WEEKLY
RENT
BONDS
28%
2%
24%
41%
26%
121%
MINIMUM TERM
03 MONTHS
0|1 YEAR
5.00 1 YEAR
0|1 MONTH
0|1 YEAR
DOLLARS
32%
22%
25%
5%
15%
99%
SUM
100%
100%
100%
100%
100%
500%
Transcribed Image Text:INVESTMENT $ 5,000.00 $ 10,000.00 santander $ 20,000.00 inbursal $ 7,000.00 banorte $ 8,500.00 SUM $ 50,500.00 flujo de fectivo $ 3,700.00 BANK azteca banamex INVESTMENT PORTOFOLIO OR FUND BCOAZ1 BNMX31 STDR20 INB5500 BNRT57 SUMA SIMPLE INTEREST (FIXED TERM) COMPOUND INTEREST (INVESTMENT ACCOUNT) ANNUITIES (SHORT-TERM PAYROLL LOAN) BONDS (CETES) PAPER CURRENCY (DOLLARS) COMPOSITION IN PERCENTAGE FIXED TERM INVESTMENT ACCOUNT LOAN 7% 12% 21% 38% 20% 98% 9% 22% 18% 10% 30% 89% RATE 24% 42% 12% 6% 9% 93% PERIOD 3% QUARTERLY 7% ANNUAL 15% MONTHLY CONVERTIBLE $ 2.98% MONTHLY 0.10% WEEKLY RENT BONDS 28% 2% 24% 41% 26% 121% MINIMUM TERM 03 MONTHS 0|1 YEAR 5.00 1 YEAR 0|1 MONTH 0|1 YEAR DOLLARS 32% 22% 25% 5% 15% 99% SUM 100% 100% 100% 100% 100% 500%
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