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You have $12,372 to invest in a stock portfolio. Your choices are Stock X with an...

You have $12,372 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.65 percent and Stock Y with an expected return of 8.91 percent. If your goal is to create a portfolio with an expected return of 11.45 percent, how much money (in $) will you invest in Stock X? Answer to two decimals, carry intermediate calcs. to four decimals.

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Answer #1

Wy+Wx = 1 WyxRy+WxxRx = 11.45% Wyx8.91%+(1-Wy)x14.65% = 11.45% -Wyx14.65%+14.65%+8.91%*Wy = 11.45% Wyx5.74% = 3.2% Wy= 0.5575

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