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 39 options:

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