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Suppose you created a portfolio consisting of only two stocks (SOFIX and CAC). Using historical data, you obtain the following estimates for the beta of

Suppose you created a portfolio consisting of only two stocks (SOFIX and CAC). Using historical data, you obtain the following estimates for the beta of each stock:

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Suppose you created a portfolio consisting of only two stocks (SOFIX and CAC). Using historical data, you obtain the following estimates for the beta of each stock: Estimate of Beta SOFIX 1.5 CAC -0.5 What portfolio weight of SOFIX would make the portfolio's expected return equal to the risk-free interest rate

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