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You want your portfolio beta to be 1 . 2 5 . Currently, your portfolio consists of $ 5 , 0 0 0 invested in

You want your portfolio beta to be 1.25. Currently, your portfolio consists of $5,000 invested in stock A with a beta of 1.40 and $4,000 in stock B with a beta of 0.90. You have another $4,500 to invest and want to divide it between stock C with a beta of 1.50 and a risk-free asset. How much should you invest in stock C?
Question 32 options:
$4,226
$4,201
$4,183
$4,102
$4,066

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