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Question: Frenchy wants her portfolio to have a beta of 1.1. She has 3 choices: Beauty School Corp., which has a beta of 1.5, Angel Corp., which has a beta of .8, and a risk free investment. Her portfolio currently has $1M with $500K of it invested in Beauty School. How much money must she put in Angel Corp. to achieve her desired beta of 1.1?

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