An investor currently holds the following portfolio: 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 1.0,to his portfolio.If the investor wants his portfolio to have a beta of 1.72,how much stock C must he replace with stock D?
A)$18,000
B)$24,000
C)$31,000
D)$36,000

Question

An investor currently holds the following portfolio:  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 1.0,to his portfolio.If the investor wants his portfolio to have a beta of 1.72,how much stock C must he replace with stock D?
A)$18,000 
B)$24,000 
C)$31,000 
D)$36,000

Quizplus · Accepted Answer

The Answer of An investor currently holds the following portfolio:  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 1.0,to his portfolio.If the investor wants his portfolio to have a beta of 1.72,how much stock C must he replace with stock D?
A)$18,000 
B)$24,000 
C)$31,000 
D)$36,000

An Investor Currently Holds the Following Portfolio: the Investor