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How much should you invest in the risk-free asset

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Joey wants his portfolio beta to be 1.10 Currently his portfolio consists of $3,000 invested in stock A with a beta of 1.65 and $2,000 in stock B with a beta of 72. You have another $5,000 to invest and want to divide it between an asset with a beta of 1.48 and a risk-free asset. How much should you invest in the risk-free asset?

Reference no: EM132316498

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