You have $$100,000$ to invest in either Stock D$,$ Stock F$,$ or a risk$-$free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of $11\mathrm{.}8$ percent. Assume D has an expected return of $15\mathrm{.}3$ percent, F has an expected return of $11\mathrm{.}2$ percent, and the risk$-$free rate is $6\mathrm{.}15$ percent. If you invest $$50,000$ in Stock D$,$ how much will you invest in Stock F$?$

Answer rating: 100% (QA)

To calculate how much you should invest in Stock F we can use the concept of a weighted average retu... View the full answer