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You want to invest $42,000 in a portfolio with a beta of no more than 1.53 and an expected return of 16.4%. Bay Corp. has
You want to invest $42,000 in a portfolio with a beta of no more than 1.53 and an expected return of 16.4%. Bay Corp. has a beta of 0.95 and an expected return of 11.3%, and City Inc. has a beta of 1.85 and an expected return of 19.17%. The risk-free rate is 3%. Is it possible to create this portfolio investing in Bay Corp. and City Inc.? If so, how much will you invest in each? (Select from the drop-down menu.) Is it possible to create this portfolio investing in Bay Corp. and City Inc.? In Bay Corp., you should invest $ (Round to the nearest cent.) In City Inc., you should invest $. (Round to the nearest cent.)
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