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You want to invest $50 000 in a portfolio with a beta of no more than 1.4 and an expected return of 12.4%. Bay Corporation has a beta of 1.2 and an expected return of 11.2%, and City Limited has a beta of 1.8 and an expected return of 14.8%. The risk-free rate is 4%. You can invest in Bay Corporation and City Limited. How much will you invest in each?

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Financial Management, Finance

Category:- Financial Management
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