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