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You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Consider the following information: Asset Investment Beta
You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Consider the following information: |
Asset | Investment | Beta |
Stock A | $250,000 | 0.75 |
Stock B | $150,000 | 1.30 |
Stock C | 1.45 | |
Risk-free asset | ||
Required: |
(a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
(Click to select)$404,569$442,896$305,767$425,862$408,828 |
(b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
(Click to select)$181,104$294,233$167,172$174,138$165,431 |
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