
02202013, 11:47 AM  #16 
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02202013, 11:49 AM  #17 
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02202013, 11:49 AM  #18 
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02202013, 11:52 AM  #19 
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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.
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02202013, 11:54 AM  #20 
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02202013, 11:57 AM  #21  
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Quote:
Your 2nd equation is A + B + C + D = 1.
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02202013, 12:53 PM  #22 
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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. 
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02202013, 01:14 PM  #23 
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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.

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02202013, 03:36 PM  #24 
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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.. 
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02202013, 03:36 PM  #25 
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reading through this thread makes me realize how stupid I am.
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02202013, 03:47 PM  #26 
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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
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02202013, 03:53 PM  #27 
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02202013, 03:54 PM  #28 
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Yikes.
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02202013, 03:56 PM  #29 
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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.
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02202013, 03:58 PM  #30 
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The answer is....
4?
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