You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You m nvest all of your money. Your goal is to create a portfolio that has an expected re 1.8 percent. Assume D has an expected return of 15.3 percent, F has an expecte eturn of 11.2 percent, and the risk-free rate is 6.15 percent. If you invest $50,000 Stock D, how much will you invest in Stock F? Note: Do not round intermediate calculations and round your answer to 2 deci places, e.q., 32.16.
You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You m nvest all of your money. Your goal is to create a portfolio that has an expected re 1.8 percent. Assume D has an expected return of 15.3 percent, F has an expecte eturn of 11.2 percent, and the risk-free rate is 6.15 percent. If you invest $50,000 Stock D, how much will you invest in Stock F? Note: Do not round intermediate calculations and round your answer to 2 deci places, e.q., 32.16.
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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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
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
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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
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.
X Answer is complete but not entirely correct.
$ -16,260.16 x
Amount of Stock F to buy
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