You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 16 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 10.2 percent, how much money will you invest in Stock X?

A) $4,410

B) $10,200

C) $4,368

D) $4,200

E) $3,990

(b) If your goal is to create a portfolio with an expected return of 10.2 percent, how much money will you invest in Stock Y?

A) $5,800

B) $5,568

C) $6,090

D) $5,510

E) $6,032