Stock in Company A sells for $85 a share and has a 3-year average annual return of $20 a share. The beta value is 1.06 . Stock in Company B sells for $82 a share and has a 3 -year average annual return of $17 a share. The beta value is 1.24 . Derek wants to spend no more than $18,000 investing in these two stocks, but he wants to earn at least $2800 in annual revenue. Derek also wants to minimize the risk.

 Determine the number of shares of each stock that Derek should buy.

Answer rating: 100% (QA)

To determine the number of shares of each stock that Derek should buy we can set up a system of equa... View the full answer