Problem:
You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17 percent. Stock X has an expected return of 14.8 percent and a beta of 1.35, and Stock Y has an expected return of 11.2 percent and a beta of 0.90.
Required:
Question 1: How much money will you invest in stock Y?
Question 2: What is the beta of your portfolio?
Note: Please explain comprehensively and give step by step solution.