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:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.

Stimulus

A signal or piece of data that elicits or influences a physiological or psychological response or activity.

Operant Conditioning

A learning theory which posits that behavior can be changed through the use of consequences, such as rewards or punishments.

Stimulus

Any event or situation that evokes a response from an organism in psychology and biology.