A $36,000 Portfolio Is Invested in a Risk-Free Security and Two

question 91

Multiple Choice

A $36,000 portfolio is invested in a risk-free security and two stocks.The beta of Stock A is 1.29 while the beta of Stock B is 0.90.One-half of the portfolio is invested in the risk-free security.How much is invested in Stock A if the beta of the portfolio is 0.58?

• A)$6,000
• B)$9,000
• C)$12,000
• D)$15,000
• E)$18,000

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Definitions:

Treatment

In experimental design, a condition applied to a group of subjects to observe its effect relative to a control group not receiving the treatment.

One-Way ANOVA

A statistical test used to determine if there are any statistically significant differences between the means of three or more independent (unrelated) groups.

Simple Analysis

A straightforward examination or investigation into a subject or data set to derive basic insights or conclusions.