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Which of these strategies should offer you the same expected return as a stock with the beta 1.5 Investing 1/3 of your money in risk-free

Which of these strategies should offer you the same expected return as a stock with the beta 1.5

  1. Investing 1/3 of your money in risk-free treasury bills and investing the reminder in the market portfolios
  2. Borrowing an amount equal to 1/2 of your wealth at the risk-free interest rate and investing the total(original wealth and borrowing amount) in the market portfolio
  3. Investing an amount equal to 3/2 of your wealth in a stock with a beta of 2 and amount equal to -1/2 of your wealth in a stock with a beta of 3

  1. 1 and 2
  2. Less than 2 statements are true
  3. 2 and 3
  4. 1 2 and 3
  5. 1 and 3

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