The tangency portfolio (Point T) is comprised of 60% in Stock A and 40% in Stock B. You wish to accomplish portfolio X. You have $10,000 to invest.

What amount must you invest in Stock A and Stock B to accomplish point X?

a) Stock A: $4,167; Stock B: $10,000

b) Stock A: $8,500; Stock B: $5,667

c) Stock A: $6,000; Stock B: $4,000

d) Stock A: $3,500; Stock B: $6,500

Return 20% Stock A Y (70% A, 30% B) 15% Point T Stock B RF = 3% 10% SD