Invest in a portfolio containing stock

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Reference no: EM13927880

You have $136,000 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 12 percent and that has only 74 percent of the risk of the overall market. If X has an expected return of 33 percent and a beta of 1.7, Y has an expected return of 18 percent and a beta of 1.1, and the risk-free rate is 6 percent, how much money will you invest in Stock Y? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)

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Reference no: EM13927880

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