Answer:
The amount invested in the Stock A = $ 6792.45
Step-by-step explanation:
Given:
Total amount to invest = $ 18,000
Expected rate of return = 12.3% = 0.123
Return on the stock A = 15.6% = 0.156
Return on the stock B = 10.3% = 0.103
Let the amount invested in stock A be 'x'
thus,
the amount invested in stock B is (18,000 - x)
now,
we can form the relation as:
15.6% of x + 10.3% of (18000 - x) = 12.3% of 18000
thus,
0.156x + 0.103(18000 - x) = 0.123 × 18000
or
0.156x + 1854 - 0.103x = 2214
or
0.053x = 2214 - 1854
or
x = 360 / 0.053
or
x = $ 6792.45
Thus,
the amount invested in the Stock A = $ 6792.45