Question: Problem 13-25 Analyzing a Portfollo [LO2, 4] You have $114,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is
Problem 13-25 Analyzing a Portfollo [LO2, 4] You have $114,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 15.8 percent. Stock X has an expected return of 13.6 percent and a beta of 1.22, and Stock Y has an expected return of 8.1 percent and a beta of .02 a. How much money will you invest in Stock Y? (Do not round Intermedlate calculations. A negative answer should be Indicated by a minus sign.) b. What is the beta of your portfolio? (Do not round Intermediate calculations and round your answer to 3 decimal places, e.g., 32161.) a. Investment in Stock Y b. Portfolio beta
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