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You want to create a portfolio equally as risky as the market, and you have $1,400,000...

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Finance

You want to create a portfolio equally as risky as the market,and you have $1,400,000 to invest. Consider the followinginformation: 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 isthe investment in Stock C? (Do not round your intermediatecalculations.) (b) What is the investment in risk-free asset? (Donot round your intermediate calculations.)

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Total Stock A B value Value of Stock A Value of Stock B 350000280000 630000 Weight of Stock A Value of Stock ATotal Stock A B Value 350000630000 05556 Weight of Stock B Value of Stock BTotal Stock A B Value 280000630000 04444 Beta of Stock A B Weight of Stock ABeta    See Answer
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You want to create a portfolio equally as risky as the market,and you have $1,400,000 to invest. Consider the followinginformation: 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 isthe investment in Stock C? (Do not round your intermediatecalculations.) (b) What is the investment in risk-free asset? (Donot round your intermediate calculations.)

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