1) You own a portfolio that has $2,100 invested in Stock A and $4,000 invested in Stock B. If the expected returns on these stocks are 9 percent and 18 percent, respectively, what is the expected return on the portfolio?

12.10%

15.20%

13.50%

15.65%

14.90%

2) You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 7 percent.

1) if your goal is to create a portfolio with an expected return of 10.4 percent, how much money will you invest in Stock X?

$ 5,100

$ 4614

$ 4857

$ 14,857

$5051

b) If your goal is to create a portfolio with an expected return of 10.4 percent, how much money will you invest in Stock Y?

$5143

$5400

$4886

$5349

$4937