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You want to create a portfolio equally as risky as the market, and you have $1,100,000 to invest. Consider the following information: Asset Investment Beta
You want to create a portfolio equally as risky as the market, and you have $1,100,000 to invest. Consider the following information: |
Asset | Investment | Beta |
Stock A | $330,000 | 0.60 |
Stock B | $220,000 | 1.30 |
Stock C | 1.50 | |
Risk-free asset | ||
Required: |
(a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
(Click to select)$427,094$394,240$317,778$390,134$410,667 |
(b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
(Click to select)$133,760$232,222$139,333$144,906$132,366 |
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