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You have $200,000 to invest in a portfolio containing Stock X and Stock Y . Your goal is to create a portfolio that has an
You have $200,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 11.65 percent. Stock X has an expected return of 10.68 percent and a beta of 1.38, and Stock Y has an expected return of 7.68 percent and a beta of .88.
1) How much money will you invest in stockY?
2) What is the beta of your portfolio?
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