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: Investment Asset Stock A Stock B Stock C Risk-free asset $ 85,000 $165,000 Beta .80 1.15 1.40 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.)
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: Investment Asset Stock A Stock B Stock C Risk-free asset $ 85,000 $165,000 Beta .80 1.15 1.40 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.)
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 20P
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