Expected return and risk-free rate

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You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 12.3 percent. Assume D has an expected return of 15.8 percent, F has an expected return of 11.7 percent, and the risk-free rate is 6.4 percent.

Required:

If you invest $50,000 in Stock D, how much will you invest in Stock F? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Amount of stock F to buy $

Reference no: EM13937936

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