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5. Portfolio manager T'im has one thousand dollars to invest. His client needs him to create a well-diversified portfolio. Tim wants to choose Stock A,

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5. Portfolio manager T'im has one thousand dollars to invest. His client needs him to create a well-diversified portfolio. Tim wants to choose Stock A, B, C and a risk free asset to build up his portfolio. He will invest $250 in stock A with a beta of 0.89; $200 in stock B with a beta of 1.28. He estimates the beta of Stock Cis 1.25. The portfolio beta should be (52) How much should Tim invest in risk free asset? $ _(53)

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