Description of this paper

You want your portfolio beta to be 0.90. Currently,

Description

solution


Question

You want your portfolio beta to be 0.90. Currently, your portfolio consists of $4,000;invested in stock A with a beta of 1.47 and $3,000 in stock B with a beta of 0.54. You;have another $9,000 to invest and want to divide it between an asset with a beta of 1.74;and a risk-free asset. How much should you invest in the risk-free asset?

 

Paper#28147 | Written in 18-Jul-2015

Price : $27
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