Solution-Creating a two-security portfolio

Creating a two-security portfolio

Reference no: EM13129578

Assume you are considering investing in two stocks, A & B. Stock A has an expected return of 16% and Stock B has an expected return of 9.5%. Your goal is to create a two-security portfolio that will have an expected return of 12%. If you have $250,000 to invest today, approximately how much would you invest in Stock A?

a) $96,000

b) $150,000

c) $75,000

d) More than $200,000

Reference no: EM13129578

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Creating a two-security portfolio

Reference no: EM13129578

Reference no: EM13129578

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