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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 | 0.80 |
Stock B | $300,000 | 1.20 |
Stock C | 1.50 | |
Risk-free asset | ||
Required: |
(a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
(Click to select)$582,000, 383,333, 560,000, 537,600, 582,400 |
(b) | What is the investment in risk-free asset? (Do not round your in, termediate calculations.) 441,667, 265,000, 254,400, 251,750, 275,600 |
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