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You want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: Asset Investment Beta
| You want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: |
| Asset | Investment | Beta |
| Stock A | $180,000 | 0.75 |
| Stock B | $270,000 | 1.10 |
| 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)$334,286$320,915$251,633$347,657$317,572 |
| (b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
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Introduction To Institutions Management And Investments
Authors: Herbert Mayo
10th International Edition
1111820643, 9781111820640
