Your Desired Portfolio Beta Is 1

question 60

Multiple Choice

Your desired portfolio beta is 1.2.Currently,your portfolio consists of $2,300 invested in Stock A with a beta of 1.43 and $3,800 in Stock B with a beta of 0.79.You have an additional $1,500 to invest and want to divide it between Stock C with a beta of 1.59 and a risk-free asset.How much should you invest in the risk-free asset?

• A)−$279.25
• B)$50.25
• C)−$200.15
• D)$182.35
• E)$246.08

---

Definitions:

Strategic Initiatives

Actions or plans undertaken by an organization to achieve strategic goals and objectives, often involving significant resource allocation.

Innovation

The creation or introduction of something new, such as a product, service, process, or idea, that adds value or solves a problem.

Product-Development Capabilities

The ability of a company to develop new products or improve existing ones, often determining its competitive edge in the market.

Metrics

Quantitative measures used to track performance, productivity, or other relevant data.