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You have SEK100,000 to invest in a portfolio containing stocks X and Y. Your goal is to create a portfolio that has an expected return
You have SEK100,000 to invest in a portfolio containing stocks X and Y. Your goal is to create a portfolio that has an expected return of 18.5%. If stock X has an expected return of 17.2% and a beta of 1.4, while stock Y has an expected return of 13.6% and a beta of 0.95, how much should you invest in X and Y? What is the beta of your portfolio?
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