You have $140,000 to invest in a portfolio containing Stock X and Stock Y. Your
ID: 2706628 • Letter: Y
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.