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Dustin wants his portfolio beta to be 1.10. Right now, his portfolio consists of $4,000 invested in stock A with a beta of 1.58 and
Dustin wants his portfolio beta to be 1.10. Right now, his portfolio consists of $4,000 invested in stock A with a beta of 1.58 and $3,000 in stock B with a beta of 0.54. Dustin has another $9,000 to invest and wants to divide it between Stock C, which has a beta of 1.78, and a risk-free asset. How much (in dollars and cents) should he invest in the risk-free asset?
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