How much should invest in the risk-free asset

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Question 1: You want your portfolio beta to be 1,20. Currently, your portfolio consists of R100 invested in share A with a beta of 1,4 and R300 in share B with a beta of 0,6. You have another R400 to invest and want to divide it between an asset with a beta of 1,6 and a risk-free asset. How much should you invest in the risk-free asset?

Reference no: EM132609017

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