You have $132,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 15 percent and that has only 70 percent of the risk of the overall market. If X has an expected return of 30 percent and a beta of 1.5, Y has an expected return of 24 percent and a beta of 1.3, and the risk-free rate is 9 percent, how much money will you invest in Stock Y?
(Do not round intermediate calculations. Round your answer to the nearest whole dollar.)
Amount ??? $
| You have $132,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 15 percent and that has only 70 percent of the risk of the overall market. If X has an expected return of 30 percent and a beta of 1.5, Y has an expected return of 24 percent and a beta of 1.3, and the risk-free rate is 9 percent, how much money will you invest in Stock Y?
Amount ??? $ |
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