You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your

Question

You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.6 percent. Stock X has an expected return of 14.0 percent and a beta of 1.42, and Stock Y has an expected return of 10.0 percent and a beta of 1.18.

You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.6 percent. Stock X has an expected return of 14.0 percent and a beta of 1.42, and Stock Y has an expected return of 10.0 percent and a beta of 1.18.

Explanation / Answer

You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.6 percent. Stock X has an expected return of 14.0 percent and a beta of 1.42, and Stock Y has an expected return of 10.0 percent and a beta of 1.18.

You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.6 percent. Stock X has an expected return of 14.0 percent and a beta of 1.42, and Stock Y has an expected return of 10.0 percent and a beta of 1.18.

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