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You have $20; 000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 20 percent and Stock Y

You have $20; 000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 20 percent and Stock Y with an expected return of 15 percent. If your goal is to create a portfolio with an expected return of 18 percent, how much money will you invest in Stock X? In Stock Y?

(a) $8; 000 in stock X and $12; 000 in stock Y.

(b) $12; 000 in stock X and $8; 000 in stock Y.

(c) $7; 500 in stock X and $12; 500 in stock Y.

(d) $12; 500 in stock X and $7; 500 in stock Y.

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