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An Investor Currently Holds the Following Portfolio: the Investor

Question 13

Multiple Choice

An investor currently holds the following portfolio: 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 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

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