You own a portfolio that has a total value of $185,000 and it is invested in Stock D with a beta of .91 and Stock E with a beta of 1.33. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D

$145,357.14

Explanation:

The computation of the dollar amount of your investment in Stock D is shown below:

Let us assume the  investment in D be $x

So,  

The investment in E is ($185,000 - x)

As we know that  

Portfolio beta= Respective beta × Respective investment weight

1 = (x ÷ 185,000 × 0.91 ) +(185,000 - x) ÷ 185,000 × 1.33

Here

Beta of market = 1

And, the Beta of risk-free assets=0

(1 × 185000) = 0.91x + 246050 - 1.33x

185,000 = 0.91x + 246050 - 1.33x

x = (246050 - 185,000) ÷ (1.33 - 0.91)

= $145,357.14

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3

answer(8,000.)