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You want to create a portfolio equally as risky as the market, and you have $1,200,000 to invest. Consider the following information: Asset Investment Beta
| You want to create a portfolio equally as risky as the market, and you have $1,200,000 to invest. Consider the following information: |
| Asset | Investment | Beta |
| Stock A | $300,000 | 0.85 |
| Stock B | $180,000 | 1.20 |
| Stock C | 1.45 | |
| Risk-free asset | ||
| Required: |
| (a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
| (b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
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The Psychology Of Trading Tools And Techniques For Minding The Markets
Authors: Brett N. Steenbarger
1st Edition
0471267619, 9780471267614
