1.

You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to

create a portfolio that has an expected return of 13.6%. if stock X has an expected

return of 11.4% and a beta of 1.25 and Stock Y has an expected return of 8.68% and a

beta of 0.85, how much will you invest in stock Y?

a)

- $97,665

b)

- $69,559

c)

- $80,880

d)

$63,930