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An investor has a $ 2 0 0 , 0 0 0 portfolio of which $ 1 2 0 , 0 0 0 has been

An investor has a $

200, 000

portfolio of which $

120, 000

has been invested in Stock A and the remainder in Stock B

.

Other characteristics of the portfolio are shown in the accompanying table.

\

table

[[

Stock A

,

Stock B

], [E (R_{A}) =_{A} = 8.4 %, E (R_{B}) =_{B} = 6.5 %

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