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4) You want a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: 1.Asset 2.Investment 3. Beta
4) You want a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information:
1.Asset
2.Investment
3. Beta
Stock A
$315,000
0.75
Stock B
$180,000
1.30
Stock C
?
1.50
Risk-free asset
(a) What is the investment in Stock C?
(b)What is the investment in risk-free asset?
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