You have K.440,000 to invest in a stock portfolio. Your choices are stock A with an...

You have K.440,000 to invest in a stock portfolio. Your choices are stock A with an expected return of 22% and stock B with an expected return of 14%. If your goal is to create a portfolio with an expected return of 18.8%, how much money will you invest in stock A? In Stock B?v

Expert Solution

Let investment in A=x

Hence investment in B=(440,000-x)

Portfolio return=Respective return*Respective weight

18.8=(x/440,000*22)+(440,000-x)/440,000*14

(18.8*440,000)=22x+(440,000-x)*14

8,272,000=22x+6,160,000-14x

x=(8,272,000-6,160,000)/(22-14)

=264,000=investment in A

Hence investment in B=(440,000-x)

=176,000

jeff jeffy answered 2 years ago

You have $11,465 to invest in a stock portfolio. Your choices are Stock X with an...

You have $11,465 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.04 percent and Stock Y with an expected return of 9.86 percent. If your goal is to create a portfolio with an expected return of 11.15 percent, how much money (in $) will you invest in Stock X? Answer to two decimals, carry intermediate calcs. to four decimals.

You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an...

You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 8 percent. Required: (a) If your goal is to create a portfolio with an expected return of 10.1 percent, how much money will you invest in Stock X? A) $7,280 B) $7,350 C) $6,650 D) $7,000 E) $33,667 (b) If your goal is to create a portfolio with an...

You have $30,000 to invest in a stock portfolio. Your choices are Stock X with an...

You have $30,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 7 percent. If your goal is to create a portfolio with an expected return of 11.1 percent, A) How much money will you invest in Stock X? A) $47,571 B) $16,692 C) $17,571 D) $18,450 E) $18,274 B) How much money will you invest in Stock Y? A) $11,932 B) $13,050...

You have $12031 to invest in a stock portfolio. Your choices are Stock X with an...

You have $12031 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.64 percent and Stock Y with an expected return of 8.86 percent. If your goal is to create a portfolio with an expected return of 12.22 percent, how much money (in $) will you invest in Stock X? Answer to two decimals, carry intermediate calcs. to four decimals.

You have $10636 to invest in a stock portfolio. Your choices are Stock X with an...

You have $10636 to invest in a stock portfolio. Your choices are Stock X with an expected return of 13.35 percent and Stock Y with an expected return of 10.69 percent. If your goal is to create a portfolio with an expected return of 11.81 percent, how much money (in $) will you invest in Stock X? Answer to two decimals, carry intermediate calcs. to four decimals.

You have $289969 to invest in a stock portfolio (this amount is your original wealth). Your...

You have $289969 to invest in a stock portfolio (this amount is your original wealth). Your choices are Stock H, with an expected return of 16.04 percent, and Stock L, with an expected return of 10.58 percent. Legal constraints require you to invest at least $44154 in stock L. If your goal is to create a portfolio with an expected return of 19.54 percent on your original wealth, what is the minimum amount you must borrow (and subsequently repay) at...

You have $218242 to invest in a stock portfolio (this amount is your original wealth). Your...

You have $218242 to invest in a stock portfolio (this amount is your original wealth). Your choices are Stock H, with an expected return of 15.14 percent, and Stock L, with an expected return of 10.39 percent. Legal constraints require you to invest at least $42016 in stock L. If your goal is to create a portfolio with an expected return of 20.18 percent on your original wealth, what is the minimum amount you must borrow (and subsequently repay) at...

You have $243358 to invest in a stock portfolio (this amount is your original wealth). Your...

You have $243358 to invest in a stock portfolio (this amount is your original wealth). Your choices are Stock H, with an expected return of 15.62 percent, and Stock L, with an expected return of 10.48 percent. Legal constraints require you to invest at least $45252 in stock L. If your goal is to create a portfolio with an expected return of 21.52 percent on your original wealth, what is the minimum amount you must borrow (and subsequently repay) at...

Analyzing a Portfolio You have $100,000 to invest in a portfolio containing Stock X and Stock...

Analyzing a Portfolio You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 12.7 percent. If Stock X has an expected return of 11.4 percent and a beta of 1.25 and Stock Y has an expected return of 8.68 percent and a beta of .85, how much money will you invest in Stock Y? How do you interpret your answer? What is the...

in your two-stock portfolio, you invest $25 in stock a and $75 in stock B. if...

in your two-stock portfolio, you invest $25 in stock a and $75 in stock B. if the beta of stock A is 1.31 and the beta of stock b is 1.39 your portfolio wold be:

Question