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You want to create a portfolio equally as risky as the market, and you have $1,600,000 to invest. Consider the following information: Asset Investment Beta
You want to create a portfolio equally as risky as the market, and you have $1,600,000 to invest. Consider the following information: |
Asset | Investment | Beta |
Stock A | $320,000 | 0.85 |
Stock B | $560,000 | 1.30 |
Stock C | 1.55 | |
Risk-free asset | ||
Required: |
(a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
(Click to select)$172,321$387,097$371,613$402,581$367,742 |
(b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
(Click to select)$346,219$332,903$547,679$316,258$319,587 |
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