Question
You have $116,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected
You have $116,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.8 percent. Stock X has an expected return of 13.4 percent and a beta of 1.30, and Stock Y has an expected return of 7.9 percent and a beta of .80.
How much money will you invest in stock Y?
What is the beta of your portfolio?
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Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
