There are only three stocks in the economy. Stock A has 20 shares outstanding and a price per share of $10. Stock B has 15 shares outstanding and a price per share of $3. Stock C has 10 shares outstanding and a price per share of $5. I decide to invest $1000 in the T-bill and $5000 in a risky portfolio that can be formed out of these 3 stocks. If the CAPM is correct, how much money should I invest in Stock A?
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