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
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 $ 137,000 .82 Stock B $ 143,000 Stock C 1.27 1.42 Risk-free asset How much will you invest in Stock C? How much will you invest in the risk-free asset? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Investment in Stock C Investment in risk-free asset
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
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