Question
You want to create a portfolio of the following four assets and make the portfolio as risky as the market portfolio, and you use $800,000
You want to create a portfolio of the following four assets and make the portfolio as risky as the market portfolio, and you use $800,000 to invest. What should be the investment in stock C?
| Asset | Investment | Beta |
| Stock A | $200,000 | 0.85 |
| Stock B | $280,000 | 1.30 |
| Stock C | ? | 1.60 |
| Risk-free asset | ? |
|
A. $70,156
B. $172,900
C. $166,250
D. $156,471
E. $320,000
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Budget Tools Financial Methods In The Public Sector
Authors: Greg G. Chen, Lynne A. Weikart, Daniel W. Williams
2nd Edition
