You have $118,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 18.4 percent. Stock X has an expected return of 16.8 percent and a beta of 1.25, and Stock Y has an expected return of 14.3 percent and a beta of .95.
How much money will you invest in stock Y?
What is the beta of your portfolio?