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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 | 0.70 |
| Stock B | $280,000 | 1.10 |
| 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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Applied International Finance
Authors: Thomas J O'Brien
1st Edition
1606497340, 9781606497340
