Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $375,000 | 0.65 |
Stock B | $300,000 | 1.25 |
Stock C | 1.40 | |
Risk-free asset | ||
Required: |
(a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
(Click to select)$604,285$489,796$654,643$597,991$629,464 |
(b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
(Click to select)$195,536$187,715$203,357$335,204$185,759 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started