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,
and you have $1,200,000 to invest. Consider the following
information:
Asset Investment Beta
Stock A $240,000 0.60
Stock B $360,000 1.25
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.)
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. Given this information, fill in
the rest of the following table:AssetInvestmentBetaStock A180,0000.85Stock B290,0001.40Stock C1.45Risk free-rate
You want to create a portfolio equally as risky as the market, and you have $800,000...
You want to create a portfolio equally as risky as the market,
and you have $800,000 to invest. You've already allocated a portion
of your wealth to Stock A and Stock B, and you've decided to also
invest money in Stock C and the risk-free asset. Consider the
following information:
Asset
Investment
Beta
Stock A
$200,000
0.80
Stock B
$160,000
1.30
Stock C
?
1.50
Risk-free asset
?
?
Required:
(a)
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
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...
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,
and you have $1,100,000 to invest. Consider the following
information:
Asset
Investment
Beta
Stock A
$275,000
0.60
Stock B
$220,000
1.25
Stock C
1.45
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 $1,400,000...
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 $350,000 0.75 Stock B
$280,000 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...
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 $385,000 0.80 Stock B
$330,000 1.35 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 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
If you want to optimize your portfolio of risky securities, which portfolio is the ideal portfolio?...
If
you want to optimize your portfolio of risky securities, which
portfolio is the ideal portfolio?
a) the portfolio that is tangent to the CAL
b) The portfolio that is furthest to the right in the
return/standard deviation space
c) the minumum variance portfolio
d) the portfolio that offers the highest return
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