You have $38,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.8 percent and Stock Y with an expected return of 8.4 percent. Your goal is to create a portfolio with an expected return of 13 percent. All money must be invested. How much will you invest in Stock X?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 12P
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You have $38,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.8 percent and Stock Y with an expected return of 8.4 percent. Your goal is to create a portfolio with an expected return of 13 percent. All money must be invested. How much will you invest in Stock X? 

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