You Would Like to Invest $18,000 and Have a Portfolio

question 104

Multiple Choice

You would like to invest $18,000 and have a portfolio expected return of 12.3 percent. You are considering two securities, A and B. Stock A has an expected return of 15.6 percent and B has an expected return of 10.3 percent. How much should you invest in stock A if you invest the balance in stock B?

• A) $5,807
• B) $6,792
• C) $7,410
• D) $7,936
• E) $8,626

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