Problem:
You have $266,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.1 percent, and Stock L, with an expected return of 11.7 percent.
Requirement:
Question: If your goal is to create a portfolio with an expected return of 12.20 percent, how much money will you invest in Stock H and in Stock L?
Note: Please explain comprehensively and give step by step solution.