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You own a portfolio that has a total value of $245,000 and it is invested in...

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Finance

You own a portfolio that has a total value of $245,000 and it isinvested in Stock D with a beta of .80 and Stock E with a beta of1.45. The beta of your portfolio is equal to the market beta. Whatis the dollar amount of your investment in Stock D?

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Solution As per the information given in the question we have Beat of Stock D 080 Beat of Stock E 145 To find the portfolio weights so that the Beta of the total portfolio Beta of the market We know that Beta of the market 1 Thus    See Answer
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Transcribed Image Text

You own a portfolio that has a total value of $245,000 and it isinvested in Stock D with a beta of .80 and Stock E with a beta of1.45. The beta of your portfolio is equal to the market beta. Whatis the dollar amount of your investment in Stock D?

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