After learning the Business Finance, Rachel wants to use her money in her piggy bank to build a stock portfolio. She has $5,000 and plans to use two stocks only: Stock X and Stock Y. She expects her portfolio to generate a target return of 20.75%. Her financial advisor tells her that stock X has an expected return of 25%, and stock Y has an expected return of 8%. To achieve her goal, how much should Rachel invest in stock X?

Question 34 options:

a)	$3,750
b)	$1,250
c)	$5,000
d)	$2,500
e)	$0

Question 35 (1 point)

Morgan is a financial advisor and he just received $10,000 from a client. Based on the client's risk tolerance, he plans to invest into two stocks only: Bridge Inc, and Water Corp. Specifically, 20% of money will be allocated to Bridge Inc., and the remaining 80% to Water Corp. Historical data shows that the standard deviation of returns is 25% and 8% for Bridge Inc. and Water Corp., respectively. In addition, the two stocks have a correlation coefficient of -0.25 (note the negative sign). Given the information above, the standard deviation of this portfolio will be_______.

Question 35 options:

a)	5.48%
b)	7.07%
c)	Cannot be determined
d)	0.50%
e)	6.50%