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You want to compile a $1,000 portfolio which will be invested in Stocks A and B plus a risk-free asset. Stock A has a beta
You want to compile a $1,000 portfolio which will be invested in Stocks A and B plus a risk-free asset. Stock A has a beta of 1.2 and Stock B has a beta of 0.7. If you invest $300 in Stock A and want a portfolio beta of 0.9, how much should you invest in Stock B?
300.00 | ||
608.15 | ||
700.00 | ||
771.43 |
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