You have a portfolio of $12,000 that is invested in A and B stocks, and a risk-free asset. $5,000 is invested in stock A. Stock A has a beta of 1.76 and stock B has a beta of 0.89. How much should be invested in stock B if you want a portfolio beta of 1.10?

Answer rating: 100% (QA)

To determine how much should be invested in stock B we can use the formul... View the full answer