Question: You have $ 2 0 0 , 0 0 0 to invest in a portfolio containing Stock A , Stock B , and a risk

You have $200,000 to invest in a portfolio containing Stock A, Stock B, and a risk-free asset. The expected return of Stock A is 15% and its beta is 1.2. The expected return of Stock B is 22%. You will invest $50,000 in Stock A. You wish to create a portfolio with an expected return of 25% and a beta of 1.5. What is the beta of stock B?

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