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.) |
A) $391,124 B) $228,232 D) $225,855 E) $237,742 |
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