(Answered) Suppose the following conditions hold the risk free rate is

Finance

Suppose the following conditions hold. The risk free rate is 4% and the market risk premium is 6%. We have a portfolio containing three stocks and a risk-free asset. We have $50 of the risk-free asset, $100 of A (B = 1.2), -$200 of B (B = 1.10) and $150 of C (B = 0.9).

Find the net dollar investment, the portfolio's expected return and B. How can we replicate this portfolio using only the risk free asset and the market portfolio?

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