You have 100000 to invest in a portfolio containing stock x


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 12.9 percent. If Stock X has an expected return of 11.2 percent and a beta of 1.30, and Stock Y has an expected return of 7.7 percent and a beta of .8, how much money will you invest in Stock Y? How do you interpret your answer? What is the beta of your portfolio?

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Financial Management: You have 100000 to invest in a portfolio containing stock x
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