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You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with

You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 7 percent.

Required:
(a)

If your goal is to create a portfolio with an expected return of 11.8 percent, how much money will you invest in Stock X?

(Click to select) $7,131 $6,514 $6,857 $16,857 $7,200

(b)

If your goal is to create a portfolio with an expected return of 11.8 percent, how much money will you invest in Stock Y?

(Click to select) $2,986 $3,300 $3,017 $3,269 $3,143

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