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You have $100,000 to invest in a share portfolio. Your choices are shares in X Ltd, with an expected return of 10%, and shares in
You have $100,000 to invest in a share portfolio. Your choices are shares in X Ltd, with an expected return of 10%, and shares in Y Ltd, with an expected return of 15%. If your goal is to get a portfolio with an expected return of 12%, how much money will you invest in share X? In share Y?
so:
Return of portfolio =
Return of X =
Return of Y =
Weight of X =
Weight of Y =
Dollar amount invested in X =
Dollar amount invested in Y =
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