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Risk-free asset to achieve a portfolio beta

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Reference no: EM132502757

You want to build a portfolio with a beta of 1.12. Right now you have invested $10,000 in Stock K with a beta of 0.95 and $6,500 in Stock L with a beta of 1.35. You have another $3,500 to invest and you want to divide this amount between Stock M with a beta of 1.62 and a risk-free asset. How much should be invested in the risk-free asset to achieve a portfolio beta of 1.12?

Reference no: EM132502757

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