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Asset Allocation Between Risky and Riskless Investments with a risky portfolio with a beta of 1.2. You wish to reduce the portfolio beta to 0.5.

Asset Allocation Between Risky and Riskless Investmentswith a risky portfolio with a beta of 1.2. You wish to reduce the portfolio beta to 0.5. In order you will change your asset allocation and add risk free government bonds. What percentage of your investment should be in government bonds and what percentage should be in the risky portfolio to accomplish your goal?

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