12. Problem Stock J has a beta of 1.31 and an expected return of 13.71%. Stock K has a beta of .86 and an expected return of 10.65%. You want a portfolio with the same risk as the market. a. What is the portfolio weight of each stock? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) b. What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock J Stock K b. Expected return % 13. Problem You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Beta Investment 139,000 $ Stock A .84 Stock B $141,000 Stock C Risk-free asset 1.29 1.44 How much will you invest in Stock C? How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Investment in Stock C Investment in risk-free asset