Analyzing a portfolio, You have $100,000 to invest in a

Analyzing a portfolio

Reference no: EM1360135

You have $100,000 to invest in a portfolio containing Stock X, Stock Y and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 13.5% and that has only 53% of the risk of the overall market. If X has an expected return of 31% and a Beta of 1.8, Y has an expected return of 20% and a Beta of 1.3, and the risk-free rate is 7%, how much money will you invest in Stock X?

Reference no: EM1360135

Questions Cloud

Determining portfolio weights : Determine the portfolio weights for a portfolio that has 45 shares of Stock A that sell for $40 per share and 30 shares of stock B that sell for $20 per share?

Theorists who do not believe that unconscious mind exists : There are some theorists who do not believe that the unconscious mind exists, therefore making it even more difficult to support.

How much memory is required to store picture : A 1024*768 image is displayed, noninterlaced, at a rate of thirty frames per second. If the image is stored with 64k-color resolution, which uses 2 bytes per pixel, how much memory is required to store the picture?

Communicating an emergency response plan : What is the value of such a plan? How might the Human Resource Manager/professional communicate this value, and "roll out" this plan to the organization?

Analyzing a portfolio : You have $100,000 to invest in a portfolio containing Stock X, Y and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 13.5 percent and that has only 53 percent of the risk of the ..

Discuss the equilibrium using graphs for the entire market : Discuss the equilibrium using graphs for the entire market and for an individual producer. Now suppose that textile producers in other countries are willing to sell large quantities of cloth in the United States for only $25 per unit.

Identify and explain appropriate modes of transportation : Identify and explain appropriate modes of transportation for the following items- Apple iPads

Social science research methods : Creswell has aligned certain philosophies of science with each of the three research approaches: Qualitative approaches-constructivist; Quantitative approaches-postpositivist and Mixed Methods approaches-pragmatic.

Estimate the net present value : Aubey Corporation is planning two projects that have the following cash flows, At what cost of capital would the two projects have the same net present value?

User Account

All Pages