You want to invest $45,000 in a portfolio with a beta of no more than 1.44 and an expected return of 14.3%. Bay Corp. has a beta of 0.83 and an expected return of 10.8%, and City Inc. has a beta of 1.9 and an expected return of 16.98%. The risk-free rate is 6%. You can invest in Bay Corp. and City Inc. How much will you invest in each?
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- You want to invest $46,000 in a portfolio with a beta of no more than 1.42 and an expected return of 13.7%. Bay Corp. has a beta of 0.89 and an expected return of 10.1%, and City Inc. has a beta of 1.71 and an expected return of 15.71%. The risk-free rate is 4%. Is it possible to create this portfolio investing in Bay Corp. and City Inc.? If so, how much will you invest in each? (Select from the drop-down menu.) Is it possible to create this portfolio investing in Bay Corp. and City Inc.? In Bay Corp., you should invest S (Round to the nearest cent.) In City Inc., you should invest $ (Round to the nearest cent.)You want to invest $44,000 in a portfolio with a beta of no more than 1:4 and an expected return of 13.8%. Bay Corp has a bela of 0.9 and an expected return of 10.3% and City Inc. has a bela of 1.7 and an expected return of 15.9%. The risk-free rate is 4%. Is it possible to create this portfolio investing in Bay Corp. and City Inc.? If so, how much will you invest in each? Select the correct choice and, if necessary, fill in the answer boxes to complete your choice. OA. It is possible to create the portfolio by investing $ in Bay Corp. and S (Round to the nearest cent) OB. It is not possible to create the portfolio. in City Inc. KILDYou want to invest $46,000 in a portfolio with a beta of no more than 1.34 and an expected return of 12.1%. Bay Corp. has a beta of 1.18 ar an expected return of 11.4%, and City Inc. has a beta of 1.76 and an expected return of 14.06%. The risk-free rate is 6%. Is it possible to create this portfolio investing in Bay Corp. and City Inc.? If so, how much will you invest in each? (Select from the drop-down menu.) Is it possible to create this portfolio investing in Bay Corp. and City Inc.? In Bay Corp., you should invest $ (Round to the nearest cent.) In City Inc., you should invest $ (Round to the nearest cent.)
- 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 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 buyThe investor has R50,000 to invest A, B and C. R12,000 will be invested into asset A. The beta for asset A and asset B is 0.90 and 1.2 respectively. Asset C represents the risk-free asset. If the investor envisages a portfolio equally as risky as the market, how much should be invested into asset B?
- 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 buyYou want your portfolio beta to be .95. Currently, your portfolio consists of $4,000 invested in Stock A with a beta of 1.26 and $7,000 in Stock B with a beta of .94. You have another $8,000 to invest and want to divide it between an asset with a beta of 1.74 and a risk-free asset. How much should you invest in the risk-free asset? Multiple Choice O $3,966 $4,425 $4,902 $4,305 $5,083The investor has R50,000 to invest A, B and C. R12,000 will be invested into asset A. The beta for asset A and asset B is 0.90 and 1.2 respectively. Asset C represents the risk-free asset. If the investor envisages a portfolio equally as risky as the market, how much should be invested into asset B? A. 32677 B. 32676 C. 32667 D. 32678
- CORPORATE FINANCE. This question requires Excel You want to invest $50,000 in a portfolio with a beta of no more than 1.4 and an expected return of 12.4%. Bay Corp. has a beta of 1.2 and an expected return of 11.2%, and City Inc. has a beta of 1.8 and an expected return of 14.8%. The risk - free rate is 4%. Is it possible to create this portfolio investing in Bay Corp. and City Inc.? If so, how much will you invest in each?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? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Investment in Stock Y b. Beta of the portfolioThe investor has R50,000 to invest A, B and C. R12,000 will be invested into asset A. The beta for asset A and asset B is 0.90 and 1.2 respectively. Asset C represents the risk-free asset. If the investor envisages a portfolio equally as risky as the market, how much should be invested into asset B? Which answer is correct? A. 32677 B. 32676 C. 32667 D. 32678