Invest in portfolio containing stock-risk-free asset

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You have $104,000 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 10 percent and that has only 82 percent of the risk of the overall market. If X has an expected return of 26 percent and a beta of 2.2, Y has an expected return of 14 percent and a beta of 1.2, and the risk-free rate is 4 percent, how much money will you invest in Stock Y?

Reference no: EM131566250

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