You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 16 percent and Stock Y with an expected return of 11 percent. Assume your goal is to create a portfolio with an expected return of 12.65 percent. How much money will you invest in Stock X and Stock Y

Investment in stock X is $6600 . Investment in stock Y is $13400

Explanation:

The expected return of a portfolio is a function of the weightage of individual stocks in a portfolio multiply by the expected returns of the individual stock that form up the portfolio. For a two stock portfolio, the formula for portfolio return is:

Return P = wX * rX  +  wY * rY

Where,

Let wX be the weight of investment in Stock X.  The weight of investment in stock Y is 1-wX

0.1265 = wX * 0.16  + (1- wX) * 0.11

0.1265  =  0.16wX  +  0.11  -  0.11wX

0.1265 - 0.11  =  0.05wX

0.0165  /  0.05  = wX

wX = 0.33 or 33%

The weightage of investment in Stock X is 33%

The weightage of investment in Stock Y is (1 - 33%) = 67%

Investment in Stock X = 0.33 * 20000  =  $6600

Investment in Stock Y = 0.67 * 20000 = $13400

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation:

answer; only identify and interpret trends in the marketplace;