You have a $15,000 portfolio which is invested in Stocks A and B, and a risk-free asset. $6,000 is invested in Stock A. Stock A has a beta of 1.63 and Stock B has a beta of .95. How much needs to be invested in Stock B if you want a portfolio beta of 1.10?
A) $8,998.90
B) $8,333.33
C) $7,706.20
D) $7,073.68
E) $9,419.27

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The Answer of You have a $15,000 portfolio which is invested in Stocks A and B, and a risk-free asset. $6,000 is invested in Stock A. Stock A has a beta of 1.63 and Stock B has a beta of .95. How much needs to be invested in Stock B if you want a portfolio beta of 1.10?
A) $8,998.90
B) $8,333.33
C) $7,706.20
D) $7,073.68
E) $9,419.27

You Have a $15,000 Portfolio Which Is Invested in Stocks