You want your portfolio beta to be 1.20. at present your, Ask an Expert

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problem: You want your portfolio beta to be 1.20. At present, your portfolio consists of 100 dollar invested in stock A with a beta of 1.4 & 300 dollar in stock B with a beta of .6. You have another 400 dollar to invest and want to divide it between an asset with a beta of 1.6 & a risk free asset. Determine invest in the risk free asset?

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