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You want to purchase 3 stocks and 1risk free asset (a treasury bond) for your investment portfolio. By creating a portfolio equally as risky as
You want to purchase 3 stocks and 1risk free asset (a treasury bond) for your investment portfolio. By creating a portfolio equally as risky as the market and you have $100,000 to invest. A partially completed spreadsheet is presented below to indicate your investments and their Betas:
Investment Investment Amount Beta
Stock A $30,000 0.80
Stock B $40,000 1.30
Stock C 1.20
Treasury Bond
What is the investment amount of the Treasury Bond in your portfolio?
a) 5000
b)10,000
c)15,000
d)20,000
e)25,000
f)30,000
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