Question: You have a $ 1 2 , 0 0 0 portfolio which is invested in stocks A and B , and a risk - free

You have a $12,000 portfolio which is invested in stocks A and B, and a risk-free asset. $3,000 is invested in stock A. Stock A has a beta of 1.76 and stock B has a beta of 0.89. How much needs to be invested in stock B if you want a portfolio beta of 1.10?

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