Problemyou have 200000 to invest in a portfolio containing, Ask an Expert

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Problem:

You have $200,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 11.85 percent. Stock X has an expected return of 10.39 percent and a beta of 1.26, and Stock Y has an expected return of 7.01 percent and a beta of .74.

Required:

Question 1: How much money will you invest in stock X?

Question 2: What is the beta of your portfolio?

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166248

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