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Currently, your portfolio consists of $4,000 invested in Stock A with a beta of 1.26 and $7,000 in Stock B with a beta of .94.
Currently, your portfolio consists of $4,000 invested in Stock A with a beta of 1.26 and $7,000 in Stock B with a beta of .94. You have another $8,000 to invest and want to investment $3,695 in an asset with a beta of 1.74 and $4,305 in a risk-free asset. How much your portfolio beta? (Remember risk free asset is assumed to have 0 risk)
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