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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 0.60 Stock B $ 375,000 1.20 Stock C 1.50 Risk-free asset What is the investment in Stock C? Investment $550,000 $416,667 $572,000 $528,000 $522,500 What is the investment in risk-free asset? Investment $200,000 $333,333 $208,000 $192,000 $190,000
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