Suppose you have $4,000 to invest in Stocks X and Y.Stock X has an expected return of 13.5% and a beta of 1.2.Stock Y has an expected return of 18% and a beta of 2.How much should you invest in Stock X if you wish to have a portfolio beta of 1.8?
A)$1,000
B)$1,750
C)$2,250
D)$2,500

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The Answer of Suppose you have $4,000 to invest in Stocks X and Y.Stock X has an expected return of 13.5% and a beta of 1.2.Stock Y has an expected return of 18% and a beta of 2.How much should you invest in Stock X if you wish to have a portfolio beta of 1.8?
A)$1,000
B)$1,750
C)$2,250
D)$2,500

Suppose You Have $4,000 to Invest in Stocks X and Y.Stock