Question 1: Determining Portfolio Weights:
What are the portfolio weights for a portfolio that has 45 shares of Stock A that sell for $40 per share and 30 shares of stock B that sell for $20 per share?
Question 2: Portfolio Expected Return
You want to invest $20,000 in a stock portfolio. Your choices are Stock X with an expected return of 14% and Stock Y with an expected return of 9%. If your goal is to create a portfolio with an expected return of 12.2%, how much money will you invest in Stock X? In Stock Y?