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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 Investment Beta
| 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 | Investment | Beta |
| Stock A | $400,000 | 0.60 |
| Stock B | $400,000 | 1.15 |
| Stock C | 1.55 | |
| Risk-free asset | ||
| What is the investment in Stock C? |
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| What is the investment in risk-free asset? |
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International Financial Management
Authors: Jeff Madura
10th Edition
1439038333, 9781439038338
