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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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