You have $102,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 13.5 percent.
Stock X has an expected return of 12.0 percent and a beta of 1.10, and Stock Y has an expected return of 9.5 percent and a beta of .80.
How much money will you invest in Stock Y? What is the beta of your portfolio?