Calculate the amount invested in treasury bonds, Financial Management

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You have an investment capital of $1,000,000.  You plan to invest a portion of this money in Treasury bonds and the remainder in a stock portfolio.  Treasury bonds are expected to yield 2% per year whereas the stock portfolio is expected to return 6% per year.  Your goal is to achieve an overall portfolio return of 5% on your total investment of $1,000,000.  Show the dollar amount you will invest in Treasury bonds.

            ANSWER:  Amount invested in TBs ________________________

 


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