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16. Stock Q has a beta of 1. A risk-free bond currently earns 4 percent. You want to form a portfolio with beta of 1.2

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16. Stock Q has a beta of 1. A risk-free bond currently earns 4 percent. You want to form a portfolio with beta of 1.2 using these two assets. How do you achieve this? Explain your investment strategy. (10 points) 17. You want to crea te a portfolio equally as risky as the market, and you have $500,000 to invest. You invest $150,000 in stock A which has beta 0.75, $130,000 in stock B which has beat 1. asset? (10 points) 2. How much do you need to invest in Stock C which has beta 1.35, and the risk-free

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