A Portfolio Has an Expected Return of 13

A portfolio has an expected return of 13.4 percent.This portfolio contains two stocks and one risk-free security.The expected return on Stock X is 12.2 percent and on Stock Y it is 19.3 percent.The risk-free rate is 4.1 percent.The portfolio value is $48,000 of which $10,000 is the risk-free security.How much is invested in Stock X?

A) $21,548.19
B) $19,514.14
C) $18,478.87
D) $22,200.14
E) $16,904.72

Correct Answer:

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