Multiple Choice
You want to design a portfolio that has a beta of zero.Stock A has a beta of 1.69 and Stock B's beta is also greater than 1.You are willing to include both stocks as well as a risk-free security in your portfolio.If your portfolio will have a combined value of $5,000,how much should you invest in Stock B?
A) $2,630
B) $0
C) $2,959
D) $3,008
E) $1,487
Correct Answer:
Verified
Correct Answer:
Verified
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