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

question 101

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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