Problem:
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 $ 146,000 .91 Stocks B $ 134,000 1.36 Stock C 1.51 Risk-free assets.
Required:
Question 1: How much will you invest in Stock C?
Question 2: How much will you invest in the risk-free asset?
Note: Explain all steps comprehensively.