Invest in portfolio containing stock-risk-free asset

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You have $124,000 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 74 percent of the risk of the overall market. If X has an expected return of 22 percent and a beta of 1.7, Y has an expected return of 20 percent and a beta of 1.6, and the risk-free rate is 7 percent, how much money will you invest in Stock Y? (Do not round intermediate calculations. Round your answer to the nearest whole dollar.)

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Reference no: EM131184971

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