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You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Given the information below, what is the

You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Given the information below, what is the amount of investment for stock B?

Asset

Investment

Beta

Stock A

$500,000

1.2

Stock B

?

0.8

Market index fund

$160,000

?

Risk-free asset

?

?

a) $300,000

b) $320,000

c) $250,000

d) $240,000

e) $275,000

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