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You want to create a portfolio equally as risky as the market, and you have $800,000 to invest. Consider the following information: Asset Investment Beta
You want to create a portfolio equally as risky as the market, and you have $800,000 to invest. Consider the following information:
Asset Investment Beta
Stock A $160,000 0.65
Stock B $160,000 1.20
Stock C 1.55
Risk-free
asset
(a) What is the investment in Stock C?
(b) What is the investment in risk-free asset?
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