Question: A firm has £120,000 to invest. It can buy shares in company X which cost £2 each and give an expected annual return of 6%, or shares in company Y which cost £4 each and give an expected annual return of 8%. It is advised not to put more than 60% of its total investments into any one type of share. What investment portfolio will maximize the expected return? (You may answer this question with or without a diagram.)