You have $300,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 14.5 percent. Stock X has an expected return of 13.28 percent and a beta of 1.44, and Stock Y has an expected return of 9.08 percent and a beta of .84.
a. How much money will you invest in Stock Y? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Investment in Stock Y =
b. What is the beta of your portfolio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Portfolio beta =