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You desire a portfolio beta of 1.4. Currently, your portfolio consists of $150 invested in Stock A with a beta of 1.4 and $250 in

You desire a portfolio beta of 1.4. Currently, your portfolio consists of $150 invested in Stock A with a beta of 1.4 and $250 in Stock B with a beta of .5. You have another $500 to invest and want to divide it between Stock C with a beta of 1.7 and a risk-free asset. How much should you invest in the risk- free asset to obtain your desired beta?

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