Question: PROMISE I will LIKE <3 You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a
PROMISE I will LIKE <3
You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 12.1 percent. If Stock X has an expected return of 10.28 percent and a beta of 1.20, and Stock Y has an expected return of 7.52 percent and a beta of .80, how much money will you invest in Stock Y? How do you interpret your answer? What is the beta of your portfolio?
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