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You want to create a portfolio equally as risky as the market, you have $1,200,000 to invest. Consider the following: Asset Investment Beta Stock A

You want to create a portfolio equally as risky as the market, you have $1,200,000 to invest. Consider the following:

Asset

Investment

Beta

Stock A

$300,000

0.90

Stock B

$300,000

1.20

Stock C

1.50

Risk-free asset

Required:

(1)

What is the investment in Stock C? (Do not round.)

A. $364,800

B. $361,000

C. $380,000

D. $395,200

E. $233,333

(2)

What is the investment in risk-free asset? (Do not round)

  1. $211,200
  2. $209,000
  3. $228,800
  4. $366,667
  5. $220,000

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