Invest in portfolio containing stock

Assignment Help Financial Management

Reference no: EM131535818

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 11.22 percent and that has only 96 percent of the overall market. If X has an expected return of 15.35 percent and a beta of 1.55. Y has an expected return of 9.4 percent and a beta of .7, and the risk-free rate is 4.5 percent, how much money will you invest in Stock X? How do you interpret your answer?

Reference no: EM131535818

Questions Cloud

Constructing is cost of capital schedule : John Corporation is constructing is cost of capital schedule. Please estimate their weighted average cost of capital.

Comparison between males and females different variables : Define your goals. You might set goals like: Comparison between males and females on the 4 different variables available

What dsm-5 disorder label might match her symptoms : What DSM-5 disorder label might match her symptoms - Which DSM-5 disorder label might match her symptoms?

Construction project to evaluate costing : You have a construction project to evaluate costing 10,000,000 for construction on a 1,000,000 piece of land.

Invest in portfolio containing stock : You have $100,000 to invest in a portfolio containing Stock X, Stock Y, and a risk free asset. how much money will you invest in Stock X?

Research question and develop a preliminary : By the end of the second session each student should select a research topic, formulate his/her research question and develop a preliminary outline.

Disclose noncash investing and financing activities in note : Refer to the information reported about Kite Corporation in Problem. Required Prepare a complete statement of cash flows using a spreadsheet as in Exhibit.

Calculate how much these options are in or out of the money : Calculate how much these options are in or out of the money.

Airport sponsor assurances pdf : Hazard Removal and Mitigation - Assurance 20 in the Airport Sponsor Assurances PDF states that "It (meaning the airport sponsor).

User Account

All Pages