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Problem 13-25 Analyzing a Portfolio [LO2, 4] You have $138,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to
Problem 13-25 Analyzing a Portfolio [LO2, 4] You have $138,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.4 percent. Stock X has an expected return of 15.6 percent and a beta of 1.40, and Stock Y has an expected return of 11.6 percent and a beta of 1.16. a. How much money will you invest in Stock Y? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) b. What is the beta of your portfolio? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Investment in Stock Y b. Portfolio beta
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