You have $257,000 to invest in a stock portfolio. Your choices are Stock H, with

Question

You have $257,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.2 percent, and Stock L, with an expected return of 10.8 percent.

If your goal is to create a portfolio with an expected return of 12.35 percent, how much money will you invest in Stock H and in Stock L? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

the answer is NOT

L=$141,350.00

H= $115,650.00

Required:

If your goal is to create a portfolio with an expected return of 12.35 percent, how much money will you invest in Stock H and in Stock L? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

the answer is NOT

L=$141,350.00

H= $115,650.00

Explanation / Answer

Hope this clarifies the question

Given Expected rate of return from portfolio 12.35% Investment $257,000.00 Expected rate of return on stock H 14.20% Expected rate of return on stock L 10.80%

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.