Create a portfolio with an expected return


Problem:

You have $12,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 11 percent and Stock Y with an expected return of 8 percent.

Required:

Question: If your goal is to create a portfolio with an expected return of 9.59 percent, how much money will you invest in Stock X? In Stock Y?

Note: Explain all calculation and formulas.

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Finance Basics: Create a portfolio with an expected return
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