You Want Your Portfolio Beta to Be 1

question 54

Multiple Choice

You want your portfolio beta to be 1.3.Currently,the portfolio consists of $100 invested in stock A with a beta of 1.5 and $300 in stock B with a beta of .8.You have another $400 to invest and want to divide it between an asset with a beta of 1.7 and a risk-free asset.How much should you invest in the risk-free asset?

• A)$17.65
• B)$50.25
• C)$200.15
• D)$382.35
• E)$400.00

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The obligation of organizations to act in ways that benefit society at large, beyond their own financial interests and legal requirements.

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