Assume the CAPM holds. Investors are only allowed to invest in stock A and stock B (these two securities form the market portfolio). Each asset's weight in the market portfolio is simply its weight in the market portfolio. One investor invests $2,000 in stock A and $3,000 in stock B. Another investor has $5,000 invested in stock A. How much,  has the second investor necessarily invested in stock B?

Answer rating: 100% (QA)

To calculate how much the second investor has necessarily invested in stock B we first need ... View the full answer