Question
You have $25,000 to invest in a portfolio containing Stock A and Stock B. Assume that Stock A has an expected return pf 13%, and
You have $25,000 to invest in a portfolio containing Stock A and Stock B. Assume that Stock A has an expected return pf 13%, and Stock B has an expected of 9%.
a) How much money will you invest in stock B if your goal is to create a portfolio that has an expected returrn of 11%?
b) How much money will you invest in stock A if your goal is to create a portfolio that has an expected return of 13%? Can we label this portfolio as a "well-diversified" portfolio?
c) How much money will you invest in stock B if your goal is to create a portfolio that has an expected return of 14%? How do you interpret your answer?
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Finance For Food Towards New Agricultural And Rural Finance
Authors: Doris Köhn
1st Edition
3662568659, 978-3662568651
