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A $36,000 Portfolio Is Invested in a Risk-Free Security and Two

Question 1

Multiple Choice

A $36,000 portfolio is invested in a risk-free security and two stocks.The beta of Stock A is 1.29 while the beta of Stock B is .90.One-half of the portfolio is invested in the risk-free security.How much is invested in Stock A if the beta of the portfolio is .58?


A) $6,000
B) $9,000
C) $12,000
D) $15,000
E) $18,000

Correct Answer:

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