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You want to create a portfolio equally as risky as the market, and you have $1,200,000 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 $1,200,000 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 $360,000 0.90
Stock B $240,000 1.30
Stock C ? 1.50
Risk-free asset ? ?

Required:
(a) How much should you invest in Stock C? (Do not round your intermediate calculations.)
(Click to select) $391,040 $357,200 $226,667 $376,000 $360,960

(b) How much should you invest in the risk-free asset? (Do not round your intermediate calculations.)
(Click to select) $212,800 $232,960 $215,040 $224,000 $373,333

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