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An investor wants to form a portfolio composed of only two stocks. He has $40,000 to invest. He wants his portfolio to have a beta
An investor wants to form a portfolio composed of only two stocks. He has $40,000 to invest. He wants his portfolio to have a beta of 2. Currently, Stock A has a beta of 1.7 and Stock B has a beta of 2.7. How much should he invest in Stock A and how much in Stock B?
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