You have $500,000 to invest in stock from two companies: Witwer Corp and Martin Corp. You have certain goals that you want your investment (i.e., your portfolio of Witwer Corp and Martin Corp stock) to meet. One goal is for your portfolio's expected return to be 10.65%. Now, suppose Witwer Corp's stock has an expected return of 13% and a beta of 1.65, and Martin Corp's stock has an expected return of 8.2% and a beta of 0.85. 

How much money should you invest in Witwer Corp stock?

Answer rating: 100% (QA)

To determine how much money to invest in Witwer Corp stock we need to use the capital asset pricing ... View the full answer