Stock in Company A sells for $87 a share and has a 3-year

Last updated: 7/12/2022

Stock in Company A sells for $87 a share and has a 3-year average annual return of $23 a share. The beta value is 1.06. Stock in Company B sells for $81 a share and has a 3-year average annual return of $19 a share. The beta value is 1.18. Derek wants to spend no more than $14,000 investing in these two stocks, but he wants to earn at least $2100 in annual revenue. Derek also wants to minimize the risk. Determine the number of shares of each stock that Derek should buy.