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You want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: Asset Investment Beta
You want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: |
Asset | Investment | Beta |
Stock A | $135,000 | 0.75 |
Stock B | $270,000 | 1.20 |
Stock C | 1.50 | |
Risk-free asset | ||
Required: |
(a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
(Click to select)$329,160$197,500$316,500$300,675$303,840 |
(b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
(Click to select)$178,500$185,640$297,500$169,575$171,360 |
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