You want your portfolio beta to be 090 currently your


You want your portfolio beta to be 0.90. 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. $3,965.52

B. $4,425.29

C. $4,902.29

D. $5,034.48

E. $5,683.92

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Financial Management: You want your portfolio beta to be 090 currently your
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