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