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You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the
You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the desired return goal?
Stock X Stock Y
Expected Return 14.0% 9.0%
Goal Return of Portfolio: 12.90%
Dollar Amount to Invest: $20,000
A) X = $13,600; Y = $6,400
B) X = $4,400; Y = $15,600
C) X = $15,600; Y = $4,400
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