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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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