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You want to create a portfolio equally as risky as the market, and you have $1,100,000 to invest. Consider the following information: Asset Investment Beta
| You want to create a portfolio equally as risky as the market, and you have $1,100,000 to invest. Consider the following information: |
| Asset | Investment | Beta |
| Stock A | $385,000 | 0.85 |
| Stock B | $275,000 | 1.30 |
| Stock C | 1.55 | |
| 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? |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
6th Edition
0201538997, 978-0201538991
