Question
In: Finance
You want to create a portfolio equally as risky as the market, and you have $1,200,000...
You want to create a portfolio equally as risky as the market, and you have $1,200,000 to invest. Consider the following information:
AssetInvestmentBeta
Stock A$420,0000.70
Stock B$360,0001.25
Stock C 1.55
Risk-free asset
Required:
(a)What is the investment in Stock C? (Do not round your intermediate calculations.)
(Click to select) $279,484 $305,962 $294,194 $213,028 $282,426
(b)What is the investment in risk-free asset? (Do not round your intermediate calculations.)
(Click to select) $130,838 $119,516 $125,806 $206,972 $120,774
Solutions
Expert Solution
Answers:-
Part (a):- $294,194
Part (b):- $125,806
Explanation:-
jeff jeffy answered 2 years agoRelated Solutions
You want to create a portfolio equally as risky as the market, and you have $1,200,000...
You want to create a portfolio equally as risky as the market,
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Stock A $240,000 0.60
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Stock C 1.60
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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You want to create a portfolio equally as risky as the market,
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You want to create a portfolio equally as risky as the market,
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Asset
Investment
Beta
Stock A
$200,000
0.80
Stock B
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1.30
Stock C
?
1.50
Risk-free asset
?
?
Required:
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How much should you invest in Stock...
You want to create a portfolio equally as risky as the market, and you have $1,000,000...
You want to create a portfolio equally as risky as the market,
and you have $1,000,000 to invest. Consider the following
information:
Asset
Investment
Beta
Stock A
$200,000
0.85
Stock B
$350,000
1.20
Stock C
1.55
Risk-free asset
Required:
(a)
What is the investment in Stock C? (Do not round your
intermediate calculations.)
(Click to select)$275,097$253,935$264,516$251,290$144,849
(b)
What is the investment in risk-free asset? (Do not
round your intermediate calculations.)
(Click to select)$192,903$178,065$305,151$176,210$185,484
You want to create a portfolio equally as risky as the market, and you have $500,000...
You want to create a portfolio equally as risky as the market,
and you have $500,000 to invest. Information about the possible
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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
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32.16.)
b.
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You want to create a portfolio equally as risky as the market, and you have $1,100,000...
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Asset
Investment
Beta
Stock A
$275,000
0.60
Stock B
$220,000
1.25
Stock C
1.45
Risk-free asset
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(b)
What is the investment in risk-free asset? (Do not
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You want to create a portfolio equally as risky as the market, and you have $1,100,000...
You want to create a portfolio equally as risky as the market,
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information:
Asset
Investment
Beta
Stock A
$275,000
0.70
Stock B
$275,000
1.35
Stock C
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Risk-free asset
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(Click to
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(b)
What is the investment in risk-free asset? (Do not
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(Click to
select) $212,193 $195,871 $335,666 $204,032 $193,830
You want to create a portfolio as risky as the market with $500,000 to invest. Fill...
You want to create a
portfolio as risky as the market with $500,000 to invest. Fill in
the following table:
Asset
Investment BETA
stock
A $85,000
0.8
stock B
$165,000 1.15
stock C
---------- 1.4
Riskfree asset _______
------
Please fill in the
blanks and show all work
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