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11.23 You have $100,000 to invest in a portfolio containing stock X, stock Y, and a risk-free asset. You must invest all of your money.
11.23 You have $100,000 to invest in a portfolio containing stock X, stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 11.22 percent and that has only 96 percent of the risk of the over- all market. If X has an expected return of 15.35 percent and a beta of 1.55, Y has an expected return of 94 percent and a beta of 0.7, and the risk-free rate is 4.5 percent, how much money will you invest in stock X? How do you interpret your
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