Analysing a portfolio


You have $100 000 to invest in a portfolio containing Share X, and Share Y. Your goal is to create a portfolio that has an expected return of 18.5%. If Share X has an expected return of 17.2% and a beta of 1.40, and Share Y has an expected return of 13.6% and a beta of 0.95, how much money will you invest in Share Y? How do you interpret your answer? What is the beta of the portfolio?

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Finance Basics: Analysing a portfolio
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