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You want your portfolio beta to be 1.23 . Currently, your portfolio consists of $4,000 invested in stock A with a beta of 1.47 and

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You want your portfolio beta to be 1.23 . Currently, your portfolio consists of $4,000 invested in stock A with a beta of 1.47 and $3,000 in stock B with a beta of 0.54 . You have another $9,000 to invest and want to divide it between an asset with a beta of 1.74 and a risk-free asset. How much should you invest in the risk-free asset? a. $4000 b. $7000 c. $2000 d. $3000

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