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Suppose that the return on the stock of a new cologne manufacturer, Eau de Rodman, Inc., has been forecasted to have a standard deviation of

Suppose that the return on the stock of a new cologne manufacturer, Eau de Rodman, Inc., has been forecasted to have a standard deviation of 30% and a correlation with the market portfolio of 0.9. If the standard deviation of the market portfolio is 20%, determine the relative holdings of the market portfolio and Eau de Rodman stock to form a portfolio with a beta of 1.8.

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