You want to invest

$41,000

in a portfolio with a beta of no more than

1.4

and an expected return of

12.8%.

Bay Corp. has a beta of

1.2

and an expected return of

11.4%,

and City Inc. has a beta of

1.8

and an expected return of

15.6%.

The risk-free rate is

3%.

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

Select the correct choice and, if necessary, fill in the answer boxes to complete your choice.

A.It is possible to create the portfolio by investing

$

in Bay Corp. and

$

in City Inc.

(Round to the nearest cent.)

B.

It is not possible to create the portfolio.