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You want your portfolio beta to be 1.3. Currently, the portfolio consists of $100 invested in stock A with a beta of 1.5 and $300

You want your portfolio beta to be 1.3. Currently, the portfolio consists of $100 invested in stock A with a beta of 1.5 and $300 in stock B with a beta of 0.8. You have another $400 to invest and want to divide it between an asset with a beta of 1.7 and a risk-free asset. How much should you invest in the risk-free asset to achieve the desired overall portfolio beta of 1.3?

A. $17.65

B. $382.35

C. $50.25

D. $400.00

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