1. 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: How much must you invest in stock C?
Asset Investment Beta
Stock A $135,820 0.82
Stock B $143,414 1.39
Stock C --- 1.42
Risk free asset --- ---
2. True or False The difference between a required rate of return and an expected rate of return is that an expected rate of return is the interest rate an investor should receive on a security given its risk