Multiple Choice
You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset. $400 is invested in stock A. Stock A has a beta of 1.3 and stock B has a beta of .7. How much needs to be invested in stock B if you want a portfolio beta of .90?
A) $0
B) $268
C) $482
D) $543
E) $600
Correct Answer:
Verified
Correct Answer:
Verified
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