You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 12.2 percent. Assume D has an expected return of 15.7 percent, F has an expected return of 11.6 percent, and the risk-free rate is 6.35 percent. If you invest $50,000 in Stock D, how much will you invest in Stock F? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Amount of Stock F to buy

You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 12.2 percent. Assume D has an expected return of 15.7 percent, F has an expected return of 11.6 percent, and the risk-free rate is 6.35 percent. If you invest $50,000 in Stock D, how much will you invest in Stock F? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Amount of Stock F to buy

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 11.8 percent. Assume D has an expected return of 15.3 percent, F has an expected return of 11.2 percent, and the risk-free rate is 6.15 percent. If you invest $50,000 in Stock D, how much will you invest in Stock F? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Amount of Stock F to buy
You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 24% .Suppose Stock X has an expected return of 18% and beta of 1.4, and Stock Y has an expected return of 12% and beta of 0.8 %. 1. How much money will you invest in Stock Y? 2. What is the beta of your portfolio?
- You have 100.000$ to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 10.5 percent. If D . has an expected return of 13.2 percent, F has an expected return 9.5 percent, and the risk-free rate is 3.8 percent, and if you invest 50.000$ in Stock D, how much will you invest in Stock F?
You want your portfolio beta to be 1.30. Currently, your portfolio consists of $100 invested in stock A with a beta of 1.4 and $300 in stock B with a beta of .6. You have another $400 to invest and want to divide it between an asset with a beta of 1.8 and a risk-free asset. How much should you invest in the risk-free asset?
You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 13 percent. If Stock X has an expected return of 31 perCent and a beta of 1.80, and Stock Y has an expected return of 20 percent and a beta of 1.3 .how much money will you invest in Stocky? How do you interpret your answer? What is the beta of your portfolio?
You have $122,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 17.6 percent. Stock X has an expected return of 14.0 percent and a beta of 1.26, and Stock Y has an expected return of 9.5 percent and a beta of 1.00. a. How much money will you invest in Stock Y? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the beta of your portfolio?
An investor has $1000 initial wealth for investment and he borrows another $500 at the risk free rate. He then invest the entire total amount of $1500 in the market portfolio. What is his portfolio beta?
You have $138,000 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 13 percent and that has only 76 percent of the risk of the overall market. If X has an expected return of 31 percent and a beta of 1.8, Y has an expected return of 20 percent and a beta of 1.2, and the risk - free rate is 7 percent, how much money will you invest in Stock Y?
You have $19,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 10 percent. Assume your goal is to create a portfolio with an expected return of 13.15 percent. How much money will you invest in Stock X and Stock Y? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Investment in Stock X Investment in Stock Y
Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a(n) 6% interest rate to invest in the stock market. You invest the entire $20,000 in an exchange-traded fund (ETF) with a 11% expected return and a 20% volatility. What is your expected return on your investment?
You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Stock A Stock B Stock C Risk-free asset Investment $135,000 $145,000 Beta .80 1.25 1.40 How much will you invest in Stock C? How much will you invest in the risk-free asset? Investment in Stock C Investment in risk-free asset (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
You have $132,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 14 percent and that has only 82 percent of the risk of the overall market. If X has an expected return of 40 percent and a beta of 1.5, Y has an expected return of 20 percent and a beta of 1.1, and the risk-free rate is 4 percent, how much money will you invest in Stock Y? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Amount LA

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