Let investment in D=$x
Hence investment in E=(210,000-x)
Portfolio beta=Respective beta*Respective investment weight
1=(x/210,000*0.87)+(210,000-x)/210,000*1.38[Beta of market=1;Beta of risk-free assets=0]
210,000=0.87x+289800-1.38x
x=(289800-210,000)/(1.38-0.87)
=$156470.59(Approx)=investment in D
You own a portfolio that has a total value of $210,000 and it is invested in...
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