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You have $25,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with
You have $25,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 8 percent. Required: (a) If your goal is to create a portfolio with an expected return of 10 percent, how much money will you invest in Stock X? $6,786 (b) If your goal is to create a portfolio with an expected return of 10 percent, how much money will you invest in Stock Y? $16,964
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