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You want to invest $50 000 in a portfolio with a beta of no more than 1.34 and an expected return of 12.3%. Bay Corporation
You want to invest $50 000 in a portfolio with a beta of no more than 1.34 and an expected return of 12.3%. Bay Corporation has a beta of 1.11 and an expected return of 10.9%, and City Limited has a beta of 1.73 and an expected return of 14.76%. The risk-free rate is 4%. Is it possible to create this portfolio investing in Bay Corporation and City Limited? If so, how much will you invest in each? Is it possible to create this portfolio investing in Bay Corporation and City Limited? Yes (Select from the drop-down menu.) In Bay Corporation, you should invest $ 31 451.61'. (Round to the nearest cent.) In City Limited, you should invest $ 18 548.39. (Round to the nearest cent.)
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