Multiple Choice
A portfolio worth $5,500 is invested in Stocks A and B plus a risk-free asset.A total of $2,500 is invested in Stock A with a beta of 1.27.Stock B has a beta of 0.89.How much needs to be invested in Stock B if the goal is to create a portfolio that will mimic the entire market?
A) −$894.20
B) $2,266.67
C) $1,482.08
D) $2,612.36
E) $3,408.15
Correct Answer:
Verified
Correct Answer:
Verified
Q26: Mr.Rhoades is the CEO of Daily News.The
Q27: Alpha stock has a beta of 1.29.The
Q29: A portfolio consists of two stocks with
Q32: The Inferior Goods Co.stock is expected to
Q33: A portfolio consists of $18,740 of Stock
Q34: What is the first step an investor
Q35: The portfolio expected return considers which of
Q66: The expected return on HiLo stock is
Q70: Over time,the unexpected return on a company's
Q79: Well-diversified portfolios have negligible<br>A)systematic risks.<br>B)unsystematic risks.<br>C)expected returns.<br>D)variances.<br>E)market