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Homework answers / question archive / You want your portfolio beta to be 1
You want your portfolio beta to be 1.30. Currently, your portfolio consists of $200 invested in stock A with a beta of 1.6 and $400 in stock B with a beta of 0.8. You have another $600 to invest and want to divide it between ABC stock with a beta of 1.9 and a risk-free asset. Approximately how much should you invest in ABC stock? $484 $440 $0 $160 $116
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