Multiple Choice
You want your portfolio beta to be 0.90.Currently,your portfolio consists of $4,000 invested in stock A with a beta of 1.47 and $3,000 in stock B with a beta of 0.54.You have another $9,000 to invest and want to divide it between an asset with a beta of 1.74 and a risk-free asset.How much should you invest in the risk-free asset?
A) $3,965.52
B) $4,425.29
C) $4,902.29
D) $5,034.48
E) $5,683.92
Correct Answer:
Verified
Correct Answer:
Verified
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