Question
You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. Consider the following information: Asset Investment Beta
| You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. Consider the following information: |
| Asset | Investment | Beta |
| Stock A | $420,000 | 0.60 |
| Stock B | $280,000 | 1.15 |
| Stock C | 1.50 | |
| Risk-free asset | ||
| What is the investment in Stock C? What is the investment in risk-free asset? |
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
