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You want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: Asset Stock A
You want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: Asset Stock A Stock B Stock C Risk-free asset Investment $315,000 $135,000 Beta 0.80 1.30 1.45 What is the investment in Stock C? $325,862 $240,250 $338,896 $312,828 $309,569 What is the investment in risk-free asset? $124,138 $209,750 $129,104 $119,172
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