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 | $ | 146,000 | .91 |
| Stock B | $ | 134,000 | 1.36 |
| Stock C | 1.51 | ||
| Risk-free asset | |||
| Requirement 1: |
| How much will you invest in Stock C? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Investment in Stock C | $ |
| Requirement 2: | |||
| How much will you invest in the risk-free asset? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Investment in risk-free asset | $ |
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
2nd Edition
0133001873, 978133001877
