Stock X has an expected return of 10% and a standard deviation of 50%. Stock Y has an expected return of 15% and a standard deviation of 40%. The correlation between stock X and stock Y is 10%.

You want to form a portfolio using stock X and Y that has a standard deviation equal to 45%. Making sure that you invest in an efficient portfolio, what weight, w, you should put on stock X in your two-stock portfolio?

A. 0.11

B. 0.89

C. -0.13

D. -0.41