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You have invested $200,000 in a portfolio of Sunny stock and Rainy stock. The Sunny stock has an expected return of 15%. The Rainy stock
You have invested $200,000 in a portfolio of Sunny stock and Rainy stock. The Sunny stock has an expected return of 15%. The Rainy stock has an expected return of 10%. Suppose your portfolio has an expected return of 12%. How much money have you invested in the Sunny stock? In Rainy stock?
- A. $40,000 in Sunny, $160,000 in Rainy.
- B. $50,000 in Sunny, $150,000 in Rainy.
- C. $60,000 in Sunny, $140,000 in Rainy.
- D. $70,000 in Sunny, $130,000 in Rainy.
- E. $80,000 in Sunny, $120,000 in Rainy.
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