12 You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. You must invest all of your money. Your portfolio already contains assets A and B, and you need to decide how much of asset C and of the risk-free asset to buy. More detailed information is given below: 5.25 points Asset Investment Stock A $ 280,000 Stock B $ 400,000 Stock C Risk-free asset Beta 0.95 1.20 1.45 eBook Print References a. How much will you invest in Stock C? (Do not round the intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Investment in Stock C $D b. How much will you invest in the risk-free asset? (Do not round the intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Investment in risk-free asset 13 Based on the following information: 6.25 points State of Economy Depression Recession Normal Boom Probability of State of Economy 0.06 0.16 0.41 0.37 Rate of Return if State Occurs -0.096 0.068 0.139 0.220 eBook Print Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) References Expected return Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation O %