You have $116,000 to invest in a portfolio containing stock X, Stock Y

Question: You have $116,000 to invest in a portfolio containing stock X, Stock Y

You have $116,000 to invest in a portfolio containing stock X, Stock Y, and a risk-free assets. You must invest all of your money. Your goal is to create portfolio that has an expected return of 11 percent and that has only 60 percent of the risk of the overall market. If X has an expected return of 28 percent and a beta of 1.8, Y has an expected return of 18 percent and a beta of 1.1, and the risk-free rate is 7 percent, how much money will you invest in Stock Y? (Do not round intermediate calculations answer to the Round nearest whole dollar?)

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jagguarpaw January 10, 2017 0 Comments