# You made some unfortunate investment decisions. You invested a total of $6,000 in three funds:... ## Question: You made some unfortunate investment decisions. You invested a total of$6,000 in three funds: CHPX( Year-to-date loss: 4%), DYRX (Year-to-date loss: 3%), and EFFX (Year-to-date loss: 6%). Your investment included equal amount in CHPX and DYRX, and your year-to-date losses total $260. How much did you invest in each of the three funds? ## Average rates When we invest in more than 1 investments then in order to arrive at the average rate we need to have weighted averages for the investments, ## Answer and Explanation: Since the amount invested in CHPX and DYRX is equal earning a loss of 4% and 3% respectively we can say that we had a loss of -3.5% on the combined investment of both the stocks. A total loss of$260 on a \$6,000 is around 4.33%

So the combination of above 2 investment and EFFX (Year-to-date loss: 6%) will together fetch a loss of 4.33%

Let the investment which fetched a loss of 3.5% be X and investment which fetched a loss of 6% be Y

So 0.035X + 0.06Y = 260 ---- equation 1

X + Y = 6000

X = 6,000 - Y

using this in equation 1

0.035 (6,000 - Y) + 0.06Y = 260

Y = 2000, X = 4000

so the amount invested in all three funds is 2,000 