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You want your portfolio beta to be 1.10. Currently, your portfolio consists of $3,000 invested in stock A with a beta of 1.65 and $2,000 in stock B with a beta of .72. You have another $5,000 to invest and want to divide it between an asset with a beat of 1.48 and a risk-free asset. How much should you invest in the risk free asset?

Financial Management, Finance

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  • Reference No.:- M92352032

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