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Portfolio Expected return of 12.3%. THe portfolio has two stocks and one risk free security. THe Expected return on stock x is 9.7% and stock y is 17.7%. The risk free rate is 3.8%. THe portfolio value is 78,000, of which 18,000 is the risk free security. How much is invested in stock x?

a. 18600
b. 19667
c. 21375
d. 22204
e. 24800

 

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