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A portfolio worth $5,500 is invested in Stocks A and B plus a risk-free asset. A total of $2,500 is invested in Stock A with

A portfolio worth $5,500 is invested in Stocks A and B plus a risk-free asset. A total of $2,500 is invested in Stock A with a beta of 1.27. Stock B has a beta of .89. How much needs to be invested in Stock B if the goal is to create a portfolio that will mimic the entire market?

Multiple Choice

$1,482.08

$3,408.15

$894.20

$2,266.67

$2,612.36

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