You have $76250 to invest in two stocks and the risk-free security. Stock A has an...

You have $76250 to invest in two stocks and the risk-free security. Stock A has an expected return of 10.7 percent and Stock B has an expected return of 11.1 percent. You want to own $30664 of Stock B. The risk-free rate is 3.78 percent and the expected return on the market is 12.87 percent. If you want the portfolio to have an expected return equal to that of the market, how much should you invest (in $) in the risk-free security?

Expert Solution

jeff jeffy answered 1 year ago

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