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You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. You've already allocated a portion of your
You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. You've already allocated a portion of your wealth to Stock A and Stock B, and you've decided to also invest money in Stock C and the risk-free asset. Consider the following information: Asset Investment Beta Stock A $490,000 0.65 Stock B $350,000 1.15 Stock C ? 1.55 Risk-free ? ? asset Required: (a) How much should you invest in Stock C? (Do not round your intermediate calculations.) (Click to select) (b) How much should you invest in the risk-free asset? (Do not round your intermediate calculations.) (Click to select)
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