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8.6 a. (5 points) You own a portfolio that has $300 invested in Stock A and $1,400 invested in Stock B. If the expected returns
8.6 a. (5 points) You own a portfolio that has $300 invested in Stock A and $1,400 invested in Stock B. If the expected returns on these stocks are 12 percent and 18 percent, respectively, what is the expected return on the portfolio? b. (5 points) You have $1,000 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 11 percent. If your goal is to create a portfolio with an expected return of 13.75 percent, how much money will you invest in Stock X? In Stock Y
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