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Problem 12-18 Analyzing a Portfolio (LO4, CFA2) You have $114,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You
Problem 12-18 Analyzing a Portfolio (LO4, CFA2) You have $114,000 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 percent and that has only 74 percent of the risk of the overall market. If X has an expected return of 33 percent and a beta of 2.2, Y has an expected return of 16 percent and a beta of 1.1, and the risk-free rate s 5 percent, how much money will you invest in Stock Y? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.) Investment in Y x This is a numeric cell, so please enter numbers only
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