You have $17,200 to invest, and you would like to build a portfolio with an expected return of 11 percent. You can invest in K shares with an expected return of 9.9 percent and L shares with an expected return of 13.5 percent. How much will you invest in Stock K?

Based on the following information, what is the standard deviation of the returns?

state of the economy	Economy Status Probability	Rate of return if State Occurs
Recession	.23	?	.111
Normal	.26		.126
Eye	.51		.236

Answer rating: 100% (QA)

To determine how much to invest in Stock K we need to calculate the weights of the investments based ... View the full answer