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Problem:

You have $250,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 14.05 percent. Stock X has an expected return of 12.74 percent and a beta of 1.32, and Stock Y has an expected return of 8.96 percent and a beta of .78.

Required:

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

Question 2: What is the beta of your portfolio?

Note: Please provide full description.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91175144

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