Question

You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 12.5 percent and Stock Y with an expected return of 9.5 percent. Assume your goal is to create a portfolio with an expected return of 11.2 percent. How much money will you invest in Stock X and Stock Y?

Answer #1

Calculation of money that is invested in stock X and stock Y

Given values in the above question

The expected return of the portfolio = 11.2% or.112

The expected return of stock X = 12.5% or .125

The expected return of stock Y = 9.5% or. 095

Let assume the total weight of a portfolio = 1(100%)

The weight of the stock Y must be one minus the weight of stock X.

E(Rp)=

.112 = 0.125wx + .095(1-Wx)

By solving the equation

.112 = .125Wx + .095 - .095Wx

.112 -.095 = 0.125Wx - .095Wx

.017 = .03Wx

Wx = 0.017/ .03

Wx =.5667

Hence money invested in stock X =.5667* $20000 = $11333

And money invested in stock Y = (1-.5667) = .4333

Hence, .4333^ $20000 = $8667

The money you invest in stock X = $11333

The money you invest in stock Y = $8667

You have $20,000 to invest in a stock portfolio. Your choices
are Stock X with an expected return of 14 percent and Stock Y with
an expected return of 8 percent.
If your goal is to create a portfolio with an expected return of
10 percent, how much money will you invest in Stock X?
$6,667
$33,333
$7,000
$6,334
$6,934
If your goal is to create a portfolio with an expected return of
10 percent, how much money...

Portfolio Expected ReturnYou have $10,000 to invest in a stock
portfolio. Your choices are Stock X with an expected return of 12.7
percent and Stock Y with an expected return of 9.1 percent. If your
goal is to create a portfolio with an expected return of 11.2
percent, how much money will you invest in Stock X? In Stock Y?

You have $5,000 to invest in a stock portfolio. Your choices are
Stock X with an expected return of 14 percent and Stock Y with an
expected return of 6 percent. If your goal is to create a portfolio
with an expected return of 12.2 percent, how much money will you
invest in Stock X?
If your goal is to create a portfolio with an expected return of
12.2 percent, how much money will you invest in Stock Y?

ou have $35,000 to invest in a stock portfolio. Your choices are
Stock X with an expected return of 16 percent and Stock Y with an
expected return of 8 percent.
If your goal is to create a portfolio with an expected return of
10.8 percent, how much money will you invest in Stock X?
If your goal is to create a portfolio with an expected return of
10.8 percent, how much money will you invest in Stock...

You have $25,000 to invest in a stock portfolio. Your choices
are Stock X with an expected return of 13 percent and Stock Y with
an expected return of 8 percent.
Required:
(a)
If your goal is to create a portfolio with an expected return of
11.9 percent, how much money will you invest in Stock X?
(Click to
select)$20,280$18,525$59,500$19,500$20,475
(b)
If your goal is to create a portfolio with an expected return of
11.9 percent, how much...

You have $19661 to invest in a stock portfolio. Your choices are
Stock X with an expected return of 13.19 percent and Stock Y with
an expected return of 8.4 percent. If your goal is to create a
portfolio with an expected return of 11.68 percent, how much money
(in $) will you invest in Stock X?

You have $15,673 to invest in a stock portfolio. Your choices
are Stock X with an expected return of 14.54 percent and Stock Y
with an expected return of 10.02 percent. If your goal is to create
a portfolio with an expected return of 11.57 percent, how much
money (in $) will you invest in Stock X? Answer to two
decimals, carry intermediate calcs. to four
decimals.

You have $150,000 to invest in a stock portfolio. Your choices
are stock A with an expected return of 16% and stock B with an
expected return of 10%. Your goal is to create a portfolio with an
expected return of 14%. How much money do you invest in stock
B?
Answer provided: $50,000
Why, what is the formula?

You have $265,000 to invest in a stock portfolio. Your choices
are Stock H, with an expected return of 14 percent, and Stock L,
with an expected return of 11.6 percent.
If your goal is to create a portfolio with an expected return of
12.75 percent, how much money will you invest in Stock H and in
Stock L? (Do not round intermediate calculations and round
your answers to 2 decimal places, e.g., 32.16.)
Investment in Stock H
$
Investment...

You have $110,000 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 74 percent of the risk of the overall
market. If X has an expected return of 30 percent and a beta of
2.0, Y has an expected return of 20 percent and a beta of 1.2, and...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 4 minutes ago

asked 29 minutes ago

asked 30 minutes ago

asked 52 minutes ago

asked 52 minutes ago

asked 55 minutes ago

asked 55 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago