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Problem 11-27 Analyzing a Portfolio [LO 2] You want to create a portfolio equally as risky as the market, and you have $500,000 to invest.
Problem 11-27 Analyzing a Portfolio [LO 2]
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 | Investment | Beta | |
Stock A | $ | 139,000 | .84 |
Stock B | $ | 141,000 | 1.29 |
Stock C | 1.44 | ||
Risk-free asset | |||
Requirement 1: |
How much will you invest in Stock C? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
Investment in Stock C | $ |
Requirement 2: | |||
How much will you invest in the risk-free asset? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
Investment in risk-free asset | $ |
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