You have $23,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 12 percent and Stock Y with an expected return of 12.5 percent. If your goal is to create a portfolio with an expected return of 12.18 percent, how much money will you invest in Stock X?
In Stock Y?

You have $268,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.3 percent, and Stock L, with an expected return of 11.9 percent.

Required: If your goal is to create a portfolio with an expected return of 12.9 percent, how much money will you invest in Stock H and in Stock L? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Investment in Stock H $

Investment in Stock L $

You have 5 million baths 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 13.5 percent and that has only 80 percent of the risk of

the overall market.

If X has an expected return of 31 percent and a beta of 1.8, Y has an expected return of 20 percent and a beta of 1.3, and the risk-free rate is 7 percent, how much money will you invest in Stock X? How do you interpret your answer?