You Want to Compile a Portfolio Valued at $1,000 Which

Multiple Choice

You want to compile a portfolio valued at $1,000 which will be invested in Stocks A and B plus a risk-free asset.Stock A has a beta of 1.2 and Stock B has a beta of .7.If you invest $300 in Stock A and want a portfolio beta of .9,how much should you invest in Stock B?

A) $700.00
B) $268.40
C) $300.00
D) $771.43
E) $608.15