You want to invest $45,000 in a portfolio with a beta of no more than...
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You want to invest $45,000 in a portfolio with a beta of no more than 1.5 and an expected return of 13.2%. Bay Corp. has a beta of 1.13 and an expected return of 10.7%, and City Inc. has a beta of 1.77 and an expected return of 15.05%. The risk-free rate is 3%. You can invest in Bay Corp. and City Inc. How much will you invest in each?
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