To set up a $17,600 portfolio, Yolanda Kettle can invest in Kroger, E(R) = 10.1%, and in Logitech, E(R) = 13.7%. How much will Yolanda allocate to Kroger if she wants her portfolio to have an E(R) = 11.1%? a. $12,711.11 b. $6,518.52 c. $4,888.89 d. $11,651.85 e. $4,277.78

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 4P
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To set up a $17,600 portfolio, Yolanda Kettle can invest in Kroger, E(R) = 10.1%, and in Logitech, E(R) = 13.7%. How much will Yolanda allocate to Kroger if she wants her portfolio to have an E(R) = 11.1%?

a. $12,711.11

b. $6,518.52

c. $4,888.89

d. $11,651.85

e. $4,277.78

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