
02202013, 11:47 AM  #16 
Supporter
Join Date: Apr 2004
Location: North Central Kansas
Casino cash: $11708


Posts: 9,433

02202013, 11:49 AM  #17 
MVP
Join Date: Nov 2011
Casino cash: $5000


Posts: 7,171

02202013, 11:49 AM  #18 
First Overall
Join Date: Jan 2011
Location: kcmo
Casino cash: $5152

__________________
The Greatest 
Posts: 10,389

02202013, 11:52 AM  #19 
Beloved & Awesome CP Celebrity
Join Date: Aug 2000
Location: Florida
Casino cash: $7688

There are multiple solutions, but a mix of:
1  0.575262544 2  0 3  0.252042008 4  0.172695448 Gives an ER of 0.065. Solver is your friend. You have 4 unknowns, 2 equations, and conditions on the 4 unknowns.
__________________

Posts: 33,773

02202013, 11:54 AM  #20 
MVP
Join Date: Nov 2011
Casino cash: $5000


Posts: 7,171

02202013, 11:57 AM  #21  
Beloved & Awesome CP Celebrity
Join Date: Aug 2000
Location: Florida
Casino cash: $7688

Quote:
Your 2nd equation is A + B + C + D = 1.
__________________


Posts: 33,773

02202013, 12:53 PM  #22 
Starter
Join Date: Apr 2005
Location: Springfield, MO
Casino cash: $7271

You can use a mix of Investment 1 & I3 or I4 then a mix of I2 plus I3 or I4. That gives you 4 mixes. You can combine any of those solutions to make a fifth.
Use xI1 + (1x)I3=.65 solve for x. Substitute any 2 investment options above and below target. 
Posts: 325

02202013, 01:14 PM  #23 
Veteran
Join Date: Nov 2007
Location: Denver
Casino cash: $5337

It's just a question of weighted averages. You must have at least one of the investments that are higher than 6.5 and at least one of the investments that are less than 6.5. To actually solve this you need more information about total dollars invested, the maximum number of individual investments that can be made or a ratio of dollars invested between funds.

Posts: 1,318

02202013, 03:36 PM  #24 
MVP
Join Date: Aug 2000
Location: Northern Kansas
Casino cash: $7547

If you just average your 4 percentages, you are close to begin with at 6.4%.
So let's say you invest $4000. 25%, or $1000, at each of the 4 rates.... 1000 at 8.5% = 85.00 1000 at 9.2% = 92.00 1000 at 3.1% = 31.00 1000 at 4.8% = 48.00 for a total of 256.00. 256.00/4000 = .064 = 6.4% 260.00/4000 = .065 = 6.5% So therefore you need to find a way to get $4.00 more back on you investment. I'm going to use the 9.2% and the 4.8% and the 1000.00 at each rate We made 140 dollars at those two rates combined. We need 144 dollars to get to 260 dollars. X = amount invested at 9.2% 2000  X = amount invested at 4.8% .092X + .048(2000  X) = 144.00 .092X + 96.00  .048X = 144.00 .044X = 144.00  96.00 .044X = 48.00 X = 48.00/.044 X = 1090.91 2000  1090.91 = 909.09 What percent of 1000 is 1090.91? 109.1% 109.1% of your original investment, which was 25%, is 25 times 1.091 = 27.275 What percent of 1000 is 909.09? 90.9% 90.9% of you original investment, which was 25%, is 25 times .909 = 22.725 So, your your percentages to be invested at each rate to give you a 6.5% return... 25% of your money at 8.5% 25% of your money at 3.1% 27.275% of your money at 9.2% 22.725% of your money at 4.8% This is just one solution, but it will work for any amount that you choose to invest. Last edited by Coogs; 02202013 at 07:53 PM.. 
Posts: 17,693

02202013, 03:36 PM  #25 
Resident Glue Sniffer
Join Date: Nov 2003
Location: Overland Park
Casino cash: $15318

reading through this thread makes me realize how stupid I am.
__________________
Life is 99% inspiration, 1% Perspiration, and 1% Attention to Detial. 
Posts: 26,948

02202013, 03:47 PM  #26 
We Ready
Join Date: Jul 2005
Casino cash: $12261

You're making this too hard. You don't have to blend all four. It's a lot easier to blend 2 and put it into a simple algebraic equation.
For example, you can use holdings 1 (x) and 3 (y). x(8.5) + y(3.1) = 6.5% is your equation. Now, you have to express x in terms of y. Because x+y= 100% (1.00) of your investment, x=1.00y Now, you rewrite the equation with only the y variable: (1y)(8.5)+y(3.1)=6.5 Do the multiplication: 8.58.5y+3.1y=6.5 Simplify further 8.55.4y=6.5 Subtract 6.5 from both sides of the equation 25.4y=0 Add 5.4y to both sides 2=5.4y Divide both sides by 5.4 to solve for y .37=y 37% of your investment should be in y. The rest (1y) should be in x. Check your work: .37(.031)+.63(.085)=.065
__________________
LoCain's a hell of a glove 
Posts: 31,503

02202013, 03:53 PM  #27 
MVP
Join Date: Nov 2011
Casino cash: $5000


Posts: 7,171

02202013, 03:54 PM  #28 
Caralho
Join Date: Sep 2011
Casino cash: $12235

Yikes.

Posts: 16,036

02202013, 03:56 PM  #29 
Resident Glue Sniffer
Join Date: Nov 2003
Location: Overland Park
Casino cash: $15318

no joke there.
my wifre is a wiz at math; but hates history. I k now enough math do do my taxes and balance a checkbook.
__________________
Life is 99% inspiration, 1% Perspiration, and 1% Attention to Detial. 
Posts: 26,948

02202013, 03:58 PM  #30 
Wasted away again...
Join Date: Aug 2000
Location: in Margaritaville
Casino cash: $10125962

The answer is....
4?
__________________
. . 
Posts: 33,624

Thread Tools  
Display Modes  

