Question
You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given
| You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: |
| Asset | Investment | Beta | |
| Stock A | $ | 139,000 | .84 |
| Stock B | $ | 141,000 | 1.29 |
| Stock C | 1.44 | ||
| Risk-free asset | |||
How much will you invest in stock C?
How much will you invest in a risk free asset?
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Fundamentals Of Futures And Options Markets
Authors: John C. Hull
7th Edition
0136103227, 9780136103226
