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You want to create a portfolio equally as risky as the market, and you have $1,100,000 to invest. Consider the following information: Asset Investment Beta
| You want to create a portfolio equally as risky as the market, and you have $1,100,000 to invest. Consider the following information: |
| Asset | Investment | Beta |
| Stock A | $165,000 | 0.90 |
| Stock B | $165,000 | 1.35 |
| Stock C | 1.40 | |
| Risk-free asset | ||
| Required: |
| (a) | What is the investment in Stock C? |
| (b) | What is the investment in risk-free asset? |
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Handbook Of The Economics Of Finance
Authors: George M. Constantinides, Milton Harris, Rene M. Stulz
1st Edition
044459406X, 978-0444594068
