Max wants a portfolio with a beta of 1.2. He currently has two stocks in his portfolio. Stock A with a beta of 1.5 and Stock B with a beta of 0.8. If the risk-free rate is 2% and the market return is 8%, what will his portfolio’s expected return be and how should he allocate his money among the two stocks?

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Q: answer must be correct or i will give down vote

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Q: what is the new beta of the investment portfolio?

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Q: An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected…

A:

Q: An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected…

A:

Q: After learning the course, you divide your portfolio into three equal parts (i.e., equal market…

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