The Employee Credit Union at Directional State University is planning the allocation of funds for the coming year. ECU makes four types of loans and...

1. The Employee Credit Union at Directional State University is planning the allocationof funds for the coming year. ECU makes four types of loans and has three additionalinvestment instruments. Each loan/investment has a corresponding risk and liquidityfactor (on a scale of 0-100, With 100 being the most risky/liquid). The variousrevenue-producing instruments are summarized in the table below: ——-_-_——.fi-.-———-_ ——‘_-_—‘—-_— Corporate stock fund 60 90Co norate bond fund 50 80 ECU has $2,000,000 available for investment during the coming year. However, statelaws and pesky stakeholders impose certain restrictions on choice of investmentinstruments. Risk-free securities may not exceed 40% of total funds available forinvestment. Unsecured loans may not exceed 10% of total funds invested in loans. Thefunds invested in automobile loans must not be less than the total of funds invested in furniture and other secured loans. The avera e risk factor ma not exceed 60, and theaverage liquidity factor must be at least 40. h. (14)