You Own a $222,000,000 Portfolio That Is Invested in Stocks

question 6

Multiple Choice

You own a $222,000,000 portfolio that is invested in Stocks A and B.The portfolio beta is equal to the market beta.Stock A has an expected return of 18.7 percent and has a beta of 1.42.Stock B has a beta of 0.88.What is the value of your investment in Stock A?

• A)$38,600
• B)$42,333
• C)$44,500
• D)$49,333
• E)$47,200

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