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You want to design a portfolio that has a beta of zero. Stock A has a beta of 1 . 6 9 and Stock B

You want to design a portfolio that has a beta of zero. Stock A has a beta of

1.69

and Stock B

'

s beta is also greater than

1 .

You are willing to include both stocks as well as a risk

-

free security in your portfolio. If your portfolio will have a combined value of $

5, 000,

how much should you invest in Stock B

?

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