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You want to invest $50,000 in a portfolio with a beta of no more than 1.31 and an expected return of 15.8%. Bay Corp. has
You want to invest $50,000 in a portfolio with a beta of no more than 1.31 and an expected return of 15.8%. Bay Corp. has a beta of 0.86 and an expected return of 11.4%, and City Inc. has a beta of 1.73 and an expected return of 19.90%. Therisk-free rate is 3%. You can invest in Bay Corp. and City Inc. How much will you invest ineach?
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