P13-24 Analyzing a Portfolio [LO2]

You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. Consider the following information:

Asset	Investment	Beta
Stock A	$350,000	0.70
Stock B	$350,000	1.20
Stock C		1.55
Risk-free asset

Required:

(a)	What is the investment in Stock C? (Do not round your intermediate calculations.)
	Which of the following is the answer: $474,194$455,226$328,512$450,484$493,162

(b)	What is the investment in risk-free asset? (Do not round your intermediate calculations.)
	Which of the following is the answer: $216,774$234,838$371,488$214,516$225,806