Task: Analyzing a Portfolio
You have $100,000 to invest in a portfolio containing Stock X, Stock Y and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 13.5% and that has only 53% of the risk of the overall market. If X has an expected return of 31% and a Beta of 1.8, Y has an expected return of 20% and a Beta of 1.3, and the risk-free rate is 7%, how much money will you invest in Stock X?