What is the dollar amount invested in stock b

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Reference no: EM131936864

You have invested $40, 134 portfolio in three securities. The three securities comprise of the risk-free asset, Stock A and Stock B.

The beta of stock A is 2.1 while the beta of stock B is 0.7, 10% of the portfolio is invested in the risk-free security.

What is the dollar amount invested in stock B if the beta of the portfolio is 1.2? Enter your answer rounded off to two decimal points.

Do not enter or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM131936864

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