You Want Your Portfolio Beta to Be 1

question 56

Multiple Choice

You want your portfolio beta to be 1.30. Currently, your portfolio consists of $200 invested in stock A with a beta of 1.6 and $400 in stock B with a beta of.8. You have another $600 to invest and want to divide it between an asset with a beta of 1.9 and a risk-free asset. Approximately how much should you invest in the risk-free asset?

• A) $0
• B) $116
• C) $160
• D) $440
• E) $484

Understand the concept of negligence per se and how it relates to the defendant's conduct.

Comprehend the doctrine of res ipsa loquitur and its application.

Differentiate between compensatory and punitive damages in tort law.

Analyze the implications of comparative and contributory negligence.