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 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1ab345f0-3ff3-4868-a5eb-a4c4ba62aec8%2F31eb4bbe-081e-4d87-9691-5d792b834bf7%2Fm5ox80j_processed.png&w=3840&q=75)
Transcribed Image Text: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
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