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You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Given this information, what is the amount
You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Given this information, what is the amount of investment for Stock A?
Asset | Investment | Beta |
Stock A | ?? | 0.8 |
Stock B | $500,000 | 1.2 |
Market Index Fund | $200,000 | ? |
Risk-free asset | ? | ? |
$ 250,000
$ 120,000
$ 150,000
$ 200,000
$ 160,000
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