You have 102000 to invest in a portfolio containing stock x


You have $102,000 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 11 percent and that has only 80 percent of the risk of the overall market. If X has an expected return of 25 percent and a beta of 2.1, Y has an expected return of 16 percent and a beta of 1.4, and the risk-free rate is 5 percent, how much money will you invest in Stock Y?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You have 102000 to invest in a portfolio containing stock x
Reference No:- TGS01576895

Expected delivery within 24 Hours