Question: An elderly woman walks into her financial advisors office to plan out her investment strategy after her husband has passed away. She wishes to maximize her return while keeping her risk under control. She has four investment opportunities with varying rates of risk and expected return. How can she maximize her expected return while keeping her risk points down to a minimum of 80. She wants to invest $40,000,000. with at least 5 million invested in each investment opportunity

INVESTMENT Return Rate Risk point per million

Bonds 4% 1

Family company 12.5% 6

Mutual Funds 7% 2

Growth equities 9% 3