1. You own a portfolio that has $1,500 invested in Stock A and $3,800 invested in Stock B. If the expected returns on these stocks are 9 percent and 14 percent, respectively, what is the expected return on the portfolio? (Do not round your intermediate calculations.)
2. You have $25,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 16 percent and Stock Y with an expected return of 8 percent. a) If your goal is to create a portfolio with an expected return of 10 percent, how much money will you invest in Stock X? b) If your goal is to create a portfolio with an expected return of 10 percent, how much money will you invest in Stock Y?