You have $15,000 to invest in a stock portfolio and a goal of an expected return...

You have $15,000 to invest in a stock portfolio and a goal of an expected return of 12.5 percent. You can choose between Stock E with an expected return of 14.3 percent and Stock F with an expected return of 10.5 percent. How much should you invest in each stock? Please show work in Excel sheet

Portfolio Value $ 15,000

Stock E E(R) 14.30%

Stock F E(R) 10.50%

Portfolio E(R) 12.50%

Weight of Stock X ?

Weight of Stock Y ?

Dollar in Stock X ?

Dollars in Stock Y ?

Expert Solution

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jeff jeffy answered 2 years ago

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