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You want to create a portfolio equally as risky as the market, and you have $1,500,000 to invest. Consider the following information: Asset Investment Beta
| You want to create a portfolio equally as risky as the market, and you have $1,500,000 to invest. Consider the following information: |
| Asset | Investment | Beta |
|---|---|---|
| Stock A | $ 300,000 | 0.70 |
| Stock B | $ 225,000 | 1.25 |
| Stock C | 1.55 | |
| Risk-free asset |
| What is the investment in Stock C? |
|
|
| What is the investment in risk-free asset? |
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Credit Derivatives Handbook Global Perspectives Innovations And Market Drivers
Authors: Greg Gregoriou, Paul Ali
1st Edition
0071549528, 978-0071549523
