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(ex 11-7) You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your
(ex 11-7)
You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 10.9 percent. Assume D has an expected return of 14.4 percent, F has an expected return of 10.3 percent, and the risk-free rate is 5.7 percent. If you invest $50,000 in Stock D, how much will you invest in Stock F? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Amount of Stock F to buy
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