Multiple Choice
An investor currently holds the following portfolio: The investor is worried that the beta of his portfolio is too high,so he wants to sell some stock C and add stock D,which has a beta of 1.0,to his portfolio.If the investor wants his portfolio to have a beta of 1.72,how much stock C must he replace with stock D?
A) $18,000
B) $24,000
C) $31,000
D) $36,000
Correct Answer:

Verified
Correct Answer:
Verified
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