You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset.

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You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset. $400 is invested in stock A. Stock A has a beta of 1.3 and stock B has a beta of 7.

How much needs to be invested in stock B if you want a portfolio beta of 90?

Related Book For answer-question

Intermediate Microeconomics

ISBN: 978-0393123968

9th edition

Authors: Hal R. Varian

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Posted Date: Mar 18, 2023 07:50 AM

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You have a $1,000 portfolio which is invested in stocks A and B plus a risk-free asset.

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To calculate the amount that needs to be invested in stock B we need to use ... View the full answer

Intermediate Microeconomics

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