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You want to invest 49,000 in a portfolio with a beta of no more than 1.58 and an expected return of 13.9 % . Bay
You want to invest 49,000 in a portfolio with a beta of no more than 1.58 and an expected return of 13.9 % . Bay Corp has a beta of 1.04 and an expected return of 10.5 % , and City Inc. has a beta of 1.83 and an expected return of 15.44 % . The risk - free rate is 4% . You can invest in Bay Corp. and City Inc. How much will you invest in each ?
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