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	$	141,000	.86
Stock B	$	139,000	1.31
Stock C			1.46
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

$