Question
You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Consider the following information: Asset Investment Beta
| You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Consider the following information: |
| Asset | Investment | Beta |
| Stock A | $250,000 | 0.80 |
| Stock B | $250,000 | 1.15 |
| Stock C | 1.55 | |
| Risk-free asset | ||
| Required: |
| (a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
| $330,645 $221,384 $343,871 $314,113 $317,419 |
| (b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
| $278,616 $169,355 $162,581 $160,887 $176,129 |
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
