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Rambo is confident that he can predict the market, that is, he thinks he knows if the market is going to go up or down.

Rambo is confident that he can predict the market, that is, he thinks he knows if the market is going to go up or down. He currently thinks the market is going to go up. He wants to hold a portfolio which has a beta of 2, by investing only in the S&P 500 (a proxy for the market portfolio) and the risk free asset.

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