Invest in the risk-free asset, Finance Basics

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Invest in the risk-free asset

You want your portolio beta to be 0.95. Currently, your portfolio consists of $4000 invested in stock A with a beta of 1.47 and $3000 in stock B with a beta of 0.54. You have another $9000 to invest and want to divide it between an asset with a beta of 1.74 and a risk -free asset. How much should invest in the risk-free asset?

A. $4,316.08

B. $4,425.29

C. $4,902.29

D. $4,574.71

E. $4,683.92

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Finance Basics: Invest in the risk-free asset

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Finance Basics: Invest in the risk-free asset

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Finance Basics: Invest in the risk-free asset

Reference No:- TGS053895

Recent Questions Asked Finance Basics

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