How much of the riskiest security should you sell and


Currently, you own a portfolio comprised of the following three securities:

Stock D value $13,640, beta 1.13

Stock E value $15,980, beta 1.48

Stock F value $23,260, beta .86

How much of the riskiest security should you sell and replace with risk-free securities if you want your portfolio beta to equal 90 percent of the market beta?

Select one:

a. $7,023.15

b. $7,811.29

c. $8,666.67

d. $7,753.51

e. $8,318.50

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Portfolio Management: How much of the riskiest security should you sell and
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