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You want your portfolio beta to be 1.38. Currently, your portfolio consists of $61,000 invested in Stock A with a beta of 1.89 and $85,000
You want your portfolio beta to be 1.38. Currently, your portfolio consists of $61,000 invested in Stock A with a beta of 1.89 and $85,000 in Stock B with a beta of 0.82. You have another $104,000 to invest and want to divide it between an asset with a beta of 2.33 and a risk-free asset. What dollar amount should you invest in the risk-free asset?
Please show work. Will upvote if correct. Need ASAP
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