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You want to create a portfolio equally as risky as the market, and you have $1,500,000 to invest. Consider the following information: Asset Investment Beta
| You want to create a portfolio equally as risky as the market, and you have $1,500,000 to invest. Consider the following information: |
| Asset | Investment | Beta |
| Stock A | $225,000 | 0.65 |
| Stock B | $525,000 | 1.10 |
| Stock C | 1.55 | |
| Risk-free asset | ||
| Required: |
| (a) | What is the investment in Stock C?
|
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Advanced Financial Risk Management Enterprise Wide Risk Management In Theory And Practice
Authors: Donald Van Deventer, Kenji Imai, Mark Mesler
3rd Edition
1547416157, 9781547416158
