You Have a $12,000 Portfolio Which Is Invested in Stocks

question 24

Multiple Choice

You have a $12,000 portfolio which is invested in stocks A and B,and a risk-free asset.$5,000 is invested in stock A.Stock A has a beta of 1.76 and stock B has a beta of 0.89.How much needs to be invested in stock B if you want a portfolio beta of 1.10?

• A) $3,750.00
• B) $4,333.33
• C) $4,706.20
• D) $4,943.82
• E) $5,419.27

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Definitions:

Stimulation

The action of arousing interest, excitement, or activity in someone or something, often through external inputs or stimuli.

Sexual Response

The physical and emotional reactions experienced during and following sexual arousal, which can include phases of desire, arousal, orgasm, and resolution.

Muscular Contractions

The activation of tension-generating sites within muscle fibers leading to shortening or lengthening of the muscle and thus movement or posture maintenance.

Pelvic Area

The lower part of the torso, located between the abdomen and the thighs, encompassing the pelvis bones and reproductive organs.