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Question 6 You have $200,000 to invest in a stock portfolio. You want to invest in two stocks, stock A and stock B. Stock A

Question 6

You have $200,000 to invest in a stock portfolio. You want to invest in two stocks, stock A and stock B. Stock A has an expected return of 8.2 percent and has a beta of 0.7. Stock B has an expected return of 13 percent and a beta of 1.5. You want the portfolios beta to be the same as the market. How much money will you invest in stock B?

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