Question: stock x is expected to return 12.4 percent while the return on stock y is expected to be 8.6 percent. You have 10,000 to invest

stock x is expected to return 12.4 percent while the return on stock y is expected to be 8.6 percent. You have 10,000 to invest in these two stocks. How much should you invest in stock y if you desire a combined portfolio return from these two stocks of 11 percent?

3,511

4,209

3,684

2,907

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

24) Stock K is expected to return 12.4 percent while the return on Stock L is expected to be 8.6 percent. You have $10,000 to invest in these two stocks. How much should you invest in Stock L if you...

Please only answer the following two questions using the data below: From Scenario 2, what are your recommendations on the investment project? Explain your reasoning. From Scenario 2, what are your...

Stock K is expected to return 12.4 percent while the return on Stock L is expected to be 8.6 percent. You have $10,000 to invest in these two stocks. How much should you invest in Stock L if you...

Stock A is expected to return 12.4 percent while the return on Stock B is expected to be 8.6 percent. You have $10,000 to invest in these two stocks. How much should you invest in Stock B if you...

22) 22) A portfolio is entirely invested into BBB stock, which is expected to return 16.4 percent, and ZI bonds, which are expected to return 8.6 percent. Stock BBB comprises 48 percent of the...

State of the EconomyProbabilityRate of Return Stock ARate of Return Stock BRecession.25.05-.19Normal.50.06.14Boom.25.10.34 Fill in the value in the spreadsheet. Problem 2 Based on the following...

Please show formulas on excel. A stock has an expected return of 12.4 percent and a beta of 1.37. The market expected return is 10 percent. What must the risk-free rate be? Fill in the values in the...

A stock has an expected return of 12.4 percent and a beta of 1.37. The market expected return is 10 percent. What must the risk-free rate be? Fill in the values in the spreadsheet. Input area: Stock...

Is expected to return 1 2 . 4 % while the return on stock is expected to be 8 . 6 % you have $ 1 0 , 0 0 0 to invest in these two stocks how much should you invest in stock if you decide a combined...

Consider the following probability distribution for stocks X and Y : State Probability Return on stock X Return on stock Y 1 .25 13% 14% .5 10% 10% .25 -6% -8% The correlation coefficient between the...

The Townsend Manufacturing Company experiences a weekly average of 0.2 accidents requiring medical attention. Find the probability that in a randomly selected week, the number of accidents requiring...

Prove that S A(V) is regular if and only if whenever v1, , vn V are linearly independent, then v1 S, v2 S, ... , vnS are also linearly independent.

3. What is amortized cost? What is fair value?

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.