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Your client wants to invest in a portfolio of two stocks, A and B. Stock A has a beta of 1.15 while Stock B has
Your client wants to invest in a portfolio of two stocks, A and B. Stock A has a beta of 1.15 while Stock B has a beta of 0.75. If you construct a portfolio that has the same systematic risk as the market, what percentage of the portfolio must be invested in Stock A?
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