How much needs to be invested in stock

How much needs to be invested in stock

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You have a $1000 portfolio that is invested in stocks A and B plus a risk-free asset. $175 is invested in stock A. Stock A has a beta of 1.2 and stock B has a beta of .7. How much needs to be invested in stock B if you want a portfolio beta of .9?

Reference no: EM131551574

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