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You want to create a portfolio equally as risky as the market, and you have $1,200,000 to invest. Consider the following information: Asset Investment Beta
You want to create a portfolio equally as risky as the market, and you have $1,200,000 to invest. Consider the following information:
| Asset | Investment | Beta |
| Stock A | $240,000 | 0.85 |
| Stock B | $360,000 | 1.15 |
| Stock C | 1.55 | |
| Risk-free asset | ||
| What is the investment in Stock C? |
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International Financial Management
Authors: Jeff Madura
10th Edition
1439038333, 9781439038338
