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4 - You invested a total of $ 1 0 , 0 0 0 in two stocks ( $ 5 , 0 0 0 in

4- You invested a total of $10,000 in two stocks ($5,000 in each) with different betas: stock A
with a beta of 1.15 and stock B with a beta of 2.86.
a) If the stock market rises 10 percent over the next year, what will be the value of each
investment?
b) If the stock market declines 10 percent over the next year, what will be the value of each
investment?

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