Question

You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Investment Beta Stock A $ 85,000 .80 Stock B $165,000 1.15 Stock C 1.40 Risk-free asset a. How much will you invest in Stock C? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer #1

Investment in stock B =$175000

Investment in risk free asset =$75000.

You want to create a portfolio equally as risky as the market,
and you have $1,000,000 to invest. Given this information, fill in
the rest of the following table: (Do not round intermediate
calculations and round your answers to 2 decimal places, e.g.,
32.16.)
Asset Investment Beta
Stock A $165,000 0.80
Stock B $350,000 1.09
Stock C ? 1.27
Risk-Free Asset ? ?

You want to create a
portfolio equally as risky as the market, and you have $1,000,000
to invest. Given this information, fill in the rest of the
following table: (Do not round intermediate calculations.
Round your answers to the nearest whole number, e.g.,
32.)
Asset
Investment
Beta
Stock A
$ 195,000
.90
Stock B
$ 340,000
1.15
Stock C
$
1.29
Risk-free asset
$

You want to create a portfolio equally as risky as the market,
and you have $2,700,000 to invest. Given this information, fill in
the rest of the following table: (Do not round intermediate
calculations. Round your answers to the nearest whole number, e.g.,
32.)
Asset
Investment
Beta
Stock A
$ 459,000
1.00
Stock B
$ 783,000
1.40
Stock C
$
1.60
Risk-free asset
$

You want to create a portfolio equally as risky as the market,
and you have $1,200,000 to invest. Consider the following
information:
Asset
Investment
Beta
Stock A
$420,000
0.70
Stock B
$300,000
1.25
Stock C
1.40
Risk-free asset
Required:
(a)
What is the investment in Stock C? (Do not round your
intermediate calculations.)
(b)
What is the investment in risk-free asset? (Do not
round your intermediate calculations.)

1)
You want to create a portfolio equally as risky as the market,
and you have $2,600,000 to invest. Given this information, fill in
the rest of the following table: (Do not round intermediate
calculations and round your answers to 2 decimal places, e.g.,
32.16.)
Asset
Investment
Beta
Stock A
$
494,000
1.40
Stock B
$
936,000
1.50
Stock C
$
?
1.60
Risk-free asset
$
?
?
2) The Hudson Corporation’s common stock has a beta of 1.5. If...

You want to create a portfolio equally as risky as the market,
and you have $1,400,000 to invest. Consider the following
information:
Asset
Investment
Beta
Stock A
$420,000
0.90
Stock B
$420,000
1.15
Stock C
1.45
Risk-free asset
Required:
(a)
What is the investment in Stock C? (Do not round your
intermediate calculations.)
(Click to select)$356,855$353,138$371,724$386,593$241,879
(b)
What is the investment in risk-free asset? (Do not
round your intermediate calculations.)
(Click to select)$188,276$318,121$178,862$180,745$195,807

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
0.70
Stock B
$275,000
1.20
Stock C
1.55
Risk-free asset
Required:
(a)
What is the investment in Stock C? (Do not round your
intermediate calculations.)
A) $401,145
B) $405,368
C) $422,258
D) $268,876
E) $439,148
(b)
What is the investment in risk-free asset? (Do not
round your intermediate calculations.)...

You want to create a portfolio equally as risky as the market,
and you have $1,400,000 to invest. Given this information, fill in
the rest of the following table: (Leave no cells blank - be
certain to enter "0" wherever required. Do not
round intermediate calculations.)
Asset
Investment
Beta
Stock A
$196,000
1.10
Stock B
$350,000
1.40
Stock C
1.60
Risk-free asset
0

You want to create a portfolio equally as risky as the market,
and you have $900,000 to invest. Consider the following
information:
Asset
Investment
Beta
Stock A
$180,000
0.90
Stock B
$180,000
1.10
Stock C
1.55
Risk-free asset
Required:
(a)
What is the investment in Stock
C? (Do not round your intermediate
calculations.)
(b)
What is the investment in
risk-free asset? (Do not round your intermediate
calculations.)

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
$330,000
0.70
Stock B
$220,000
1.25
Stock C
1.50
Risk-free asset
Required:
(a)
What is the investment in Stock C? (Do not round your
intermediate calculations.)
(b)What is the investment in risk-free asset?
(Do not round your intermediate calculations.)

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