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Suppose an investor has a portfolio consisting of $40,000 invested in stocks and $60,000 invested in bonds. The expected return on the stock is 10%,

Suppose an investor has a portfolio consisting of $40,000 invested in stocks and $60,000 invested in bonds. The expected return on the stock is 10%, and the expected return on the bond is 6%. The investor wants to achieve an overall portfolio return of 8%. What percentage of the total portfolio should be invested in stocks and what percentage should be invested in bonds? Assume that the covariance between the stock and bond returns is 0.02.

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