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 1 year ago

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