Question
You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the
You are constructing a two stock portfolio based on the information provided below. What dollar amount will you invest in each stock to achieve the desired return goal?
| Stock X | Stock Y | |
| Expected Return | 14.0% | 9.0% |
Goal Return of Portfolio: 10.00%
Dollar Amount to Invest: $20,000
A. X = $4,000; Y = $16,000
B. X = $16,000 Y = $4,000
C. X = $13,600; Y = $6,400
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Finance
Authors: Angelico Groppelli, Ehsan Nikbakht
7th Edition
1438010362, 9781438010366
