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(Estimated time allowance: 8 minutes) You want to build a portfolio using two available risky assets: Asset B has a beta of 0.8 and an

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(Estimated time allowance: 8 minutes) You want to build a portfolio using two available risky assets: Asset B has a beta of 0.8 and an expected return of 8.6%; Asset A has a beta of 1.6 and an expected return of 13%. You want the portfolio formed with these two assets to have an expected return of 10%. What proportion of the portfolio must be invested in the Asset A? ** Provide answer in decimal terms and round to 2 digits. Please include the 0 and dot before the decimals. Examples: If your result is 0.125, enter 0.13; if your result is 0.500, then enter 0.50; if you result is 0.333, then enter 0.33 Your

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