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You want to create a portfolio equally as risky as the market, and you have $1,500,000 to invest. You've already allocated a portion of your
You want to create a portfolio equally as risky as the market, and you have $1,500,000 to invest. You've already allocated a portion of your wealth to Stock A and Stock B, and you've decided to also invest money in Stock C and the risk-free asset. Consider the following information: Asset Stock A Stock B Stock C Risk-free asset Investment $525,000 $450,000 ? Beta 0.65 1.35 1.60 ? ? Required: (a) How much should you invest in Stock C? (Do not round your intermediate calculations.) (Click to select) (b) How much should you invest in the risk-free asset? (Do not round your intermediate calculations.) (Click to select)
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