Suppose that you want to make a portfolio using two stocks, A and B. Stock A gives you a return of 8% (risk of 43%) and stock B gives you a return of 4% (risk of 25%). You have $800 to invest and you want to earn a return of 7%. 1) How much money should you invest in Stock A? 2) How much money should you invest in stock B? 3) What is the risk in your portfolio?

This question is purposely vague. You may need to make certain assumptionsto fully answer this question.Please write those assumptions clearlybefore you use them in your answer.