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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

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 percent of your portfolio should be invested in Security 1?

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