You want to invest

$40 000

in a portfolio with a beta of no more than

1.4

and an expected return of

12.9%.

Bay Corporation has a beta of

1.01

and an expected return of

10.7%,

and City Limited has a beta of

1.86

and an expected return of

15.49%.

The risk-free rate is

5%.

Is it possible to create this portfolio investing in Bay Corporation and City Limited? If so, how much will you invest in each?