Analyzing a Portfolio You have $200,000 to invest in a portfolio containing Stock X and...
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Accounting
Analyzing a Portfolio
You have $200,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 11.85 percent. Stock X has an expected return of 10.39 percent and a beta of 1.26, and Stock Y has an expected return of 7.01 percent and a beta of .74.
1-How much money will you invest in stock X? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16))
2-What is the beta of your portfolio? (Do not round intermediate calculations and round your answer to 3 decimal places. (e.g., 32.161))
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