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Question.... dhfjskjlf sldbns dfj If an investor wants to design a 1M portfolio based on two stocks. The portfolio target beta is 1. Stock A
Question.... dhfjskjlf sldbns dfj
If an investor wants to design a 1M portfolio based on two stocks. The portfolio target beta is 1. Stock A has average return of 8% and beta of 1.8. Stock B has average return of 13% and beta of 0.7. The correlation coefficient between the return of 2 stocks A and B is 0.40. If the average return of the market is 12% and risk free rate of return is 10%, What is the dollar amount that should be invested in each stock?
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