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i Chrome File Edit View History Bookmarks People Window Help 99% " Tue 11:31 AM "a Net Present Value Calculator x Final Homework 3 Homework 4 Sample Final x Secure l https://ccle.ucia.edu/mod/quiz/attempt.php?attempts 2027943&page;:16 UCLA CCLE IShared System Need Help CHAN, CHING Y My sites 18W-MGMT130A-2 Final/ Final Control Panel Question 17 Not yet Quiz navigation Suppose you own a portfolio with a beta of0.73. The portfolio has the following c Asset Google Inc. Chesapeake Utilities Corp.? Treasury Bond (risk free) 550 Value ($) Beta 1.54 0.64 Points out of 650 8 9 10 11 12 13 14 15 16 17 18 19 20 21g 22 23 Finish attempt... Flag ? How much do you have invested in Chesapeake Utilities Corp.? Select one: a. 1388.89 b. 585.00 C. 5850.00 Od. 2200.00 e. 138.89 Previous page Next page © 2018 UC Regents ttps://ccie.uca.edu/modjquiz/attempt.php?attempt-2027943&page-17;# Contact About Privacy Copyright UCLA linksI UCLA Registrar MyUCLA Disability Couns/PsychSvc (CAPS)Explanation / Answer
Beta, Treasury Bond = 0
Let amount invested in Chesapeake Utilities Corp. be $x
Total Amount Invested = $650 + $x + $550
Total Amount Invested = $1,200 + $x
Portfolio beta = Sum of Weight of Assets*Beta of Assets
0.73 = {$650/($1,200+$x)}*1.54 + {$x/($1,200+$x)}*0.64 + {$550/($1,200+$x)}*0
$876 + 0.73*$x = $1,001 + 0.64*$x
0.09*$x = $125
$X = $1,388.89
So, amount invested in Chesapeake Utilities Corp. is $1,388.89
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