Question

You are constructing a two stock portfolio based on the information provided below. What dollar amount...

You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the desired return goal?

Stock X Stock Y
Expected Return 14.0% 9.0%

Goal Return of Portfolio: 10.00%

Dollar Amount to Invest: $20,000

X = $4,000; Y = $16,000

X = $16,000 Y = $4,000

X = $13,600; Y = $6,400

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