Natsano Has at Most $60,000 to Invest in the Common

Multiple Choice

Natsano has at most $60,000 to invest in the common stocks of two companies. He estimates that an investment in company A will yield a return of 10%, whereas an investment in company B, which he feels is a riskier investment, will yield a return of 20%. If he decides that his investment in the stocks of company A is to exceed his investment in the stocks of company B by at least $30,000, determine how much he should invest in the stocks of each company in order to maximize the returns on his investment.

A) Investment in company A is $15,000. Investment in company B is $45,000.
B) Investment in company A is $45,000. Investment in company B is $15,000.
C) Investment in company A is $60,000. Investment in company B is $0.
D) Investment in company A is $40,000. Investment in company B is $20,000.
E) Investment in company A is $0. Investment in company B is $60,000.