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Assume you want to construct a portfolio with a 14 percent return from the following two securities: Security Expected Return Beta 1 16% 1.12 2

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Assume you want to construct a portfolio with a 14 percent return from the following two securities: Security Expected Return Beta 1 16% 1.12 2 12.5% 0.94 What percentage of your portfolio should be invested in Security 1? O 57% O 53% O 43% O 47%

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