Currently, you own a portfolio comprised of the following three securities. How much of the riskiest security should you sell and replace with risk-free securities if you want your portfolio beta to equal 90 percent of the market beta?
A) $7,023.15
B) $7,811.29
C) $8,666.67
D) $9,613.64
E) $10,318.50

Question

Currently, you own a portfolio comprised of the following three securities. How much of the riskiest security should you sell and replace with risk-free securities if you want your portfolio beta to equal 90 percent of the market beta? 
A) $7,023.15 
B) $7,811.29 
C) $8,666.67 
D) $9,613.64 
E) $10,318.50

Quizplus · Accepted Answer

The Answer of Currently, you own a portfolio comprised of the following three securities. How much of the riskiest security should you sell and replace with risk-free securities if you want your portfolio beta to equal 90 percent of the market beta? 
A) $7,023.15 
B) $7,811.29 
C) $8,666.67 
D) $9,613.64 
E) $10,318.50

Currently, You Own a Portfolio Comprised of the Following Three