You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset....
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You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 12.4 percent. Assume D has an expected return of 15.9 percent, F has an expected return of 11.8 percent, and the risk-free rate is 6.45 percent. If you invest $50,000 in Stock D, how much will you invest in Stock F?
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