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You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given
| You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: |
| Asset | Investment | Beta | |
| Stock A | $ | 141,000 | .86 |
| Stock B | $ | 139,000 | 1.31 |
| Stock C | 1.46 | ||
| Risk-free asset | |||
| How much will you invest in Stock C? How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance
9th Edition
1133190197, 978-1133190196
