You want your portfolio beta to be 1.3. currently, the portfolio consists of $100,000 invested in stock a with a beta of 1.5 and $300,000 in stock b with a beta of .8. you have another $400,000 to invest and want to divide it between an asset with a beta of 2.1 and a risk-free asset. how much should you invest in the risk-free asset?

answer; sales of books;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.