Question: You have $ 1 2 0 , 0 0 0 to invest in a portfolio containing Stock X , Stock Y , and a risk

You have $120,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 19 percent and that has only 70 percent of the risk of the overall market. If X has an expected return of 40 percent and a beta of 1.5, Y has an expected return of 19.5 percent and a beta of 1.4, and the risk-free rate is 4 percent, how much money will you invest in Stock Y?

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