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You have 1 0 0 0 dollars to invest and need to construct a portfolio with a beta of 1 . You decided to invest
You have dollars to invest and need to construct a portfolio with a beta of You decided to invest dollars in Stock X which has a beta of There is another stock, Stock Y that has a beta of and a riskfree asset. How much will you invest in Stock Y and will you need to borrow or lend with the riskfree rate?
A There isn't enough information
B Invest dollars in Stock Y and borrow dollars at the riskfree rate
C Investment dollars in Stock Y and lend dollars at the riskfree rate
D Invest dollars in Stock Y and there is no need to borrow or lend at the riskfree rate
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