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You have $122,000 to invest in a portfolio containing Stock X and Stock Y. Your

ID: 2715454 • Letter: Y

Question

You have $122,000 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 percent and a beta of 1.26, and Stock Y has an expected return of 9.5 percent and a beta of 1.00.

  

You have $122,000 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 percent and a beta of 1.26, and Stock Y has an expected return of 9.5 percent and a beta of 1.00.

Explanation / Answer

You have $122,000 to invest in a portfolio containing Stock X and Stock Y. Your

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