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You want your portfolio beta to be the same as market portfolio. Currently, your portfolio consists of $4,000 invested in stock A with a beta

You want your portfolio beta to be the same as market portfolio. Currently, your portfolio consists of $4,000 invested in stock A with a beta of 1.47 and $3,000 in stock B with a beta of 0.54. You have another $9,000 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?

A. None of the above

B. $4,114.94

C. $4,574.71

D. $4,425.29

E. $4,902.29

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