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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 rate is 2%, the expected return on
You are building two-asset portfolio out of the risk-free asset and a risky asset, Stock X. The risk-free rate is 2%, the expected return on Stock X is 5.25%, and its beta is 0.5. You want the portfolio to have an expected return of 20.85% and a beta of 2.9. You only have $120 to invest. How much do you have to borrow? $
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