You have $100,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free...

You have $100,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. You goal is to create a portfolio that has an expected return of 13% and that has only 70% of the risk of the overall market. If X has an expected return of 31% and a beta of 1.8, Y has an expected return of 20% and a beta of 1.3, and the risk-free rate is 7%, how much money will you invest in Stock Y?

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jeff jeffy answered 1 month ago

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