6. You want to build a portfolio of two stocks: Stock A and Stock B. Stock A has a beta of 1.5 and Stock B has a beta of .4. If the current risk-free interest rate is 3% and the market risk premium is 10%, what proportion of your portfolio do you have to invest in stocks A and B, respectively, in order to obtain a portfolio with an expected return of 15%? A. Invest 27.3% of the portfolio in Stock A and 72.7% in Stock B B. Invest 33.3% of the portfolio in Stock A and 66.6% in Stock B C. Invest 66.6% of the portfolio in Stock A and 33.3% in Stock B D. Invest 72.7% of the portfolio in Stock A and 27.3% in Stock B E. Invest 87.6% of the portfolio in Stock A and 12.4% in Stock B

6. You want to build a portfolio of two stocks: Stock A and Stock B. Stock A has a beta of 1.5 and Stock B has a beta of . 4 . If the current risk-free interest rate is 3% and the market risk premium. is 10%, what proportion of your portfolio do you have to invest in stocks A and B, respectively, in order to obtain a portfolio with an expected return of 15% ? A. Invest 27.3% of the portfolio in Stock A and 72.7% in Stock B B. Invest 33.3% of the portfolio in Stock A and 66.6% in Stock B C. Invest 66.6% of the portfolio in Stock A and 33.3% in Stock B D. Invest 72.7% of the portfolio in Stock A and 27.3% in Stock B E. Invest 87.6% of the portfolio in Stock A and 12.4% in Stock B