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You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 16 percent and Stock Y with an expected return of 6 percent.
Required:
(a) If your goal is to create a portfolio with an expected return of 10.2 percent, how much money will you invest in Stock X?
A) $4,410
B) $10,200
C) $4,368
D) $4,200
E) $3,990
(b) If your goal is to create a portfolio with an expected return of 10.2 percent, how much money will you invest in Stock Y?
A) $5,800
B) $5,568
C) $6,090
D) $5,510
E) $6,032
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