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You are building two - asset portfolio out of the risk - free asset and a risky asset, Stock X . The risk - free
You are building twoasset portfolio out of the riskfree asset and a risky asset, Stock X The riskfree rate is the expected return on Stock X is and its beta is You want the portfolio to have an expected return of and a beta of You only have $ to invest. How much do you have to borrow?
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