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You want to create a portfolio equally as risky as the market, and you have $1,600,000 to invest. Consider the following information Asset Stock A
You want to create a portfolio equally as risky as the market, and you have $1,600,000 to invest. Consider the following information Asset Stock A Stock B Stock C Risk-free asset Investment $400,000 $560,000 0.85 1.25 1.50 Required (a) What is the investment in Stock C? (Do not round your intermediate calculations.) $358,400 $354,666 $388,266 $373,333 $195,555 (b) What is the investment in risk-free asset? (Do not round your intermediate calculations.) $277,334 $253,334 $444,445 $256,000 $266,667
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