Multiple Choice
Your desired portfolio beta is 1.2.Currently,your portfolio consists of $2,300 invested in Stock A with a beta of 1.43 and $3,800 in Stock B with a beta of 0.79.You have an additional $1,500 to invest and want to divide it between Stock C with a beta of 1.59 and a risk-free asset.How much should you invest in the risk-free asset?
A) −$279.25
B) $50.25
C) −$200.15
D) $182.35
E) $246.08
Correct Answer:
Verified
Correct Answer:
Verified
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