Final answer:
To determine how much you should invest in stock b, you need to consider the proportion of your portfolio you want to allocate to it. The amount you should invest can be calculated as a percentage of the total value of your portfolio.
Step-by-step explanation:
To determine how much you should invest in stock b, you need to consider the proportion of your portfolio you want to allocate to it. Let's say you decide to allocate x% of your portfolio to stock b. Since the combined value of your portfolio is $5,000, the amount you should invest in stock b can be calculated as:
Amount to invest in stock b = x% of $5,000
For example, if you decide to allocate 20% of your portfolio to stock b:
Amount to invest in stock b = 20% of $5,000 = $1,000