You want your portfolio beta to be 1.10. Currently, your portfolio consists of $3,000 invested in stock A with a beta of 1.65 and $2,0 another $5,000 to invest and want to divide it between an asset with a beta of 1.48 and a risk-free asset. How much should you inv O $3,115 • $0 • $5,000 ○ $775 ○ $1,885

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You want your portfolio beta to be 1.10. Currently, your portfolio consists
of $3,000 invested in stock A with a beta of 1.65 and $2,0 another $5,000
to invest and want to divide it between an asset with a beta of 1.48 and a
risk-free asset. How much should you inv O $3,115
• $0
• $5,000
○ $775
○ $1,885
Transcribed Image Text:You want your portfolio beta to be 1.10. Currently, your portfolio consists of $3,000 invested in stock A with a beta of 1.65 and $2,0 another $5,000 to invest and want to divide it between an asset with a beta of 1.48 and a risk-free asset. How much should you inv O $3,115 • $0 • $5,000 ○ $775 ○ $1,885
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