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You are creating a portfolio that mimics a fully diversified market index. Assume you have $2 million fund to invest. You plan to allocate $200,000
You are creating a portfolio that mimics a fully diversified market index. Assume you have $2 million fund to invest. You plan to allocate $200,000 and $365,000 of your fund to invest in stock A and B, respectively. To achieve your goal, you need to add an additional risky stock C and a risk-free bond to your portfolio. How much would you invest in stock C and risk-free bond?
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-0077459451, 77459458, 978-1259027628, 1259027627, 978-0073382395
