An investor with risk aversion A=2 is allocating $100,000 between T-bills with a return of 0.01, and a risky portfolio with E(r) = 0.05 and = 0.15. The risky portfolio is comprised of 60% stocks and 40% bonds; the investor cannot change the stock/bond mix within the risky portfolio. How much money should be invested in stocks?

Select one:

a. $88,889

b. $53,333

c. $15,000

d. $60,000

e. $30,000