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Question 15 4 pts Nick has just won $150,000 prize money from a running competition. He wants to invest this money into a stock portfolio
Question 15 4 pts Nick has just won $150,000 prize money from a running competition. He wants to invest this money into a stock portfolio of just Telstra and Westpac stocks. Telstra has an E(r) = 8.1% and a beta = 0.65 whilst Westpac has an E(r) = 12.7% and a beta = 1.24. Nick wishes to create a portfolio that has an expected return of 11.6% p.a. (a) How much money should he invest in Telstra and Westpac stocks, respectively? (b) What is the beta of Nick's portfolio? How does this compare to the market portfolio
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