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Portfolio beta. You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset. $400 is invested in stock A.

Portfolio beta. You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset. $400 is invested in stock A. Stock A has a beta of 1.3 and stock B has a beta of .7. How much needs to be invested in stock B if you want a portfolio beta of .80?

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