You have another 400 to invest and want to divide it


You want your portfolio beta to be 1.3. Currently, the portfolio consists of $100 invested in stock A with a beta of 1.5 and $300 in stock B with a beta of .8. You have another $400 to invest and want to divide it between an asset with a beta of 1.7 and a risk-free asset. How much should you invest in the risk-free asset?

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Financial Management: You have another 400 to invest and want to divide it
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