How much needs to be invested in stock b

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Question - You have a $3,500 portfolio which is invested in stocks A and B plus a risk-free asset. $1,400 is invested in stock A. Stock A has a beta of 1.3 and stock B has a beta of 0.7. You want a portfolio beta of 0.9.

Required -

a. How much needs to be invested in stock B?

b. How much needs to be invested in the risk-free asset?

Reference no: EM132847473

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