Analyzing a portfolio you have to invest in a portfolio


Analyzing a portfolio. You have to invest in a portfolio containing Stock X, Stock Y and a risk free asset. You must invest all your money. Your goal is to create a portfolio that has an expected retun of 13% and that has only 80% of the risk of the overall market. If X has an expected return of 31% and a beta of 1.8 and Y has an expected return of 20% and a beta of 1.3 and the risk free rate is 7%, what is the portfolio weight on X?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Analyzing a portfolio you have to invest in a portfolio
Reference No:- TGS02349301

Expected delivery within 24 Hours