Question
You want your portfolio beta to be 1.30. Currently, your portfolio consists of $200 invested in stock A with a beta of 1.6 and $400
You want your portfolio beta to be 1.30. Currently, your portfolio consists of $200 invested in stock A with a beta of 1.6 and $400 in stock B with a beta of.8. You have another $600 to invest and want to divide it between an asset with a beta of 1.9 and a risk-free asset. Approximately how much should you invest in the risk-free asset?
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$440
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$160
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$484
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$0
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$116
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The Ascendancy Of Finance
Authors: Joseph Vogl, Simon Garnett
1st Edition
1509509305, 978-1509509300
