Answer to Question #304476 in Management for Tryth

Question

Nkandu has a K10,000 to invest in a stock portfolio on LuSE. He intends to invest Page 3 of 3 in Stock X with an expected return of 14 percent and Stock Y with an expected return of 10.5 percent. If his goal is to create a portfolio that will generate a return of 12.4 percent, how much money should he invest in Stock X and Stock Y?

Answer 1

K6000 should be invested on stock Y and K4000 be invested on stock X.