The characteristics of stock X and Y and portfolio (p) are given in the table below. Assume that T-bill rate is 8%.

	Expected Return	Standard Deviation (STD)
Stock X	10%	15%
Stock Y	15%	25%
Portfolio (p) consisting of 50% stock X and 50% stock Y	12.5%	11%

A. If you have $20,000 and could invest only in stock Y and T-bills, and you desire for an expected return of 9.4% on your investment. How much dollars ($) would you invest in stock Y and T-bills? (6 points)

B. (Continued from #A) What will be the standard deviation (STD) on your investment in #A? (3 points)

C. Mary invested all of her $20,000 savings in stock X. If you want to invest only in stock Y and T-bills, how much dollars ($) would you invest in stock Y and T-bills so that your portfolio will have the same STD as Marys portfolio? (6 points)

D. John invests $6,000 in T-bill, $7,000 in stock X, and $7,000 in stock Y. What is the STD on Johns investment? (6 points)