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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 | $ 85,000 | .80 | |
Stock B | $165,000 | 1.15 | |
Stock C | 1.40 | ||
Risk-free asset | |||
a. | How much will you invest in Stock C? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
b. | How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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