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An investor wishes to invest a total of 50,000 in a combination of two funds, A and B, so that their investment has a beta
An investor wishes to invest a total of 50,000 in a combination of two funds, A and B, so that their investment has a beta of 1. Fund A has an expected return of 14.5%. Fund B invests 80% of funds under investment in the market and the remainder in risk-free bonds. The risk-free rate is 4% per annum and the market risk premium is 7.5% per annum. How much should be invested in each fund (to the nearest 100)
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