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You want your portfolio beta to be 1.10. Currently, your portfolio consists of $6,000 invested in stock A with a beta of 1.47 and $4,000
You want your portfolio beta to be 1.10. Currently, your portfolio consists of $6,000 invested in stock A with a beta of 1.47 and $4,000 in stock B with a beta of 0.84. You have another $10,000 to invest and want to divide it between an asset with a beta of 1.74 and a risk-free asset. How much should you invest in the risk-free asset
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