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Ou want to create a portfiolio equally as risky as the market, and you have $500,000...

Question:

ou want to create a portfiolio equally as risky as the market, and you have $500,000 to invest. Information about the possibl
ou want to create a portfiolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below Asset Stock A 120,000 Stock B 150,000 Stock C Risk-free asset Investment Beta 80 1.15 1.40 Requirement 1: How much will you invest in Stock C? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Investment in Stock C Requirement 2: How much will you invest in the risk-free asset? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Investment in risk-free asset

Answers

Beta of the portfolio market beta 1 risk free asset beta0 Let weight of stockc-x (0.8 120000/500000) (1.15*150000/500000) (1.

.

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