Multiple Choice
You have a $12,000 portfolio which is invested in stocks A and B,and a risk-free asset.$5,000 is invested in stock A.Stock A has a beta of 1.76 and stock B has a beta of 0.89.How much needs to be invested in stock B if you want a portfolio beta of 1.10?
A) $3,750.00
B) $4,333.33
C) $4,706.20
D) $4,943.82
E) $5,419.27
Correct Answer:
Verified
Correct Answer:
Verified
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