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You want your portfolio beta to be 1 . 0 4 . Currently, your portfolio consists of $ 3 , 0 0 0 invested in
You want your portfolio beta to be Currently, your
portfolio consists of $ invested in stock A with a
beta of and $ in stock with a beta of
You have another $ to invest and want to divide
it between an asset with a beta of and a riskfree
asset. How much should you invest in the riskfree
asset?
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