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? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign.) Investment in Stock Y $ -92,800 What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) Beta of the portfolio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started