(RiskReturn) An investor currently holds the following portfolio: 8,000 shares of Stock A, worth $18,000; Beta...

 

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(RiskReturn) An investor currently holds the following portfolio: 8,000 shares of Stock A, worth $18,000; Beta = 1.2 15,000 shares of Stock B, worth $50,000; Beta-1.81 25,000 shares of Stock C, worth $96,000; Beta - 2.1 The investor is worried that the beta of his portfolio is too high, so he wants to sell some stock C and add stock D. which has a beta of 1.1, to his portfolio. If the investor wants his portfolio to have a beta of 1.67, he must replace $ with stock D. Note: Enter the first two digits of your answers. The thousands are already in the answer. 000 stock C (RiskReturn) An investor currently holds the following portfolio: 8,000 shares of Stock A, worth $18,000; Beta = 1.2 15,000 shares of Stock B, worth $50,000; Beta-1.81 25,000 shares of Stock C, worth $96,000; Beta - 2.1 The investor is worried that the beta of his portfolio is too high, so he wants to sell some stock C and add stock D. which has a beta of 1.1, to his portfolio. If the investor wants his portfolio to have a beta of 1.67, he must replace $ with stock D. Note: Enter the first two digits of your answers. The thousands are already in the answer. 000 stock C

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To calculate the number of shares of stock D that the investor needs to add to the portfolio we can ... View the full answer