Question 16
“Fake Money (FM)” is an investment consulting firm.
Dr. Milo has approached FM with Rs. 1,00,000 for guidance on investment opportunities. Dr. Milo wants to invest the entire Rs. 1,00,000. FM’s top financial analyst recommends that all new investments be made in oil industry, steel industry or government bonds. Specifically, the analyst identified five investment opportunities and projected their annual rates of returns (which are specified in Table-1). Dr. Milo, is a guy who likes to distribute his investments. Hence, he has specified the following requirements to the analyst
1. Neither industry (oil or steel) should receive more than Rs. 50,000
2. Government bonds should be at least 25% of the steel industry investments
3. The investments in Bongu Oil, the high-return but high-risk investment, cannot be more than 60% of total oil industry investment
Given this information, answer the subquestions
If FM has suggested the below distribution of investments, then how much money (total money) is projected to be in hand at the end of the first year? (Note: Enter the answer in “Rs.” rounded to two decimal places without the “Rs.” symbol. For example, if the answer is “Rs. 1.234”, then enter it as “1.23”)