You have $40,000 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 6 percent. Required:

(a) If your goal is to create a portfolio with an expected return of 11.9 percent, how much money will you invest in Stock X?

A.) $27,533

B.) 24,911

C.) 52,889

D.) 26,222

E.) 27271

(b) If your goal is to create a portfolio with an expected return of 11.9 percent, how much money will you invest in Stock Y?

A.) $ 13,778

B.) 14,467

C.) 14,329

D.) 13,227

E.) 13,089