Business, 24.12.2019 19:31 Imelda593

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.

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.

a. how much money will you invest in stock y? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

b. 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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