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You have $50,000 to invest in a portfolio containing Stock G and Stock H. Stock G has an expected return of 13.8% and a beta
You have $50,000 to invest in a portfolio containing Stock G and Stock H. Stock G has an expected return of 13.8% and a beta of 1.8. Stock H has an expected return of 6%. The return on T-Bills is 3%. If your goal is to create a portfolio that is one-and-a-half times as risky as the overall market, how should you allocate your money?
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