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 $135,000 0.65 Stock B $270,000 1.35 Stock C 1.50 Risk-free asset Required: (a) What is the investment in Stock C? (Do not round your intermediate calculations.) (Click to select) $298,500 $167,500 $310,440 $283,575 $286,560 (b) What is the investment in risk-free asset? (Do not round your intermediate calculations.) (Click to select) $196,500 $188,640 $204,360 $327,500 $186,675
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 $135,000 0.65 Stock B $270,000 1.35 Stock C 1.50 Risk-free asset Required: (a) What is the investment in Stock C? (Do not round your intermediate calculations.) (Click to select) $298,500 $167,500 $310,440 $283,575 $286,560 (b) What is the investment in risk-free asset? (Do not round your intermediate calculations.) (Click to select) $196,500 $188,640 $204,360 $327,500 $186,675
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter12: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 5FPE: Assume that you’ve just inherited $500,000 and have decided to invest a big chunk of it ($350,000,...
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|
ou 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 | $135,000 | 0.65 |
| Stock B | $270,000 | 1.35 |
| Stock C | 1.50 | |
| Risk-free asset | ||
| Required: |
| (a) | What is the investment in Stock C? (Do not round your intermediate calculations.) |
| (Click to select) $298,500 $167,500 $310,440 $283,575 $286,560 |
| (b) | What is the investment in risk-free asset? (Do not round your intermediate calculations.) |
| (Click to select) $196,500 $188,640 $204,360 $327,500 $186,675 |
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