Problem 11.04 – Calculation of investment amounts for a target portfolio return. How much in X and Y?

Essentials of Corporate Finance

Ross, Westerfield, and Jordan

10th Edition and 11th Edition

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Given two stocks with different expected returns and a fixed amount of money to invest, determine how much money to invest in each stock to achieve a target portfolio return. What is the investment in stock X and what is the investment in stock Y?

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