You have a total of $$\$ 500,000$$ that is to be invested in (1) certificates
of deposit, (2) municipal bonds, (3) blue-chip stocks, and (4) growth or
speculative stocks. How much should be put in each type of investment?
The certificates of deposit pay \(2.5 \%\) simple annual interest, and the
municipal bonds pay \(10 \%\) simple annual interest. Over a five-year period,
you expect the blue-chip stocks to return \(12 \%\) simple annual interest and
the growth stocks to return \(18 \%\) simple annual interest. You want a
combined annual return of \(10 \%\) and you also want to have only one-fourth of
the portfolio invested in stocks.