Question:

Fund A sells at $32 a share and has a 3-year average annual

Last updated: 7/13/2022

Fund A sells at $32 a share and has a 3-year average annual

Fund A sells at $32 a share and has a 3-year average annual return of $3 per share. The risk measure of standard deviation is 15.5. Fund B sells at $42 a share and has a 3-year average annual return of $8 a share. The risk measure of standard deviation is 12.8. Sally Burkhardt wants to spend no more than $8000 investing in these two funds, but she wants to obtain at least $800 in annual revenue. Sally also wants to minimize her risk. Determine how many shares of stock Sally should buy. ***** Sally should buy shares of Fund A and (Round to the nearest whole number as needed.) shares of Fund B.