You want to create a portfolio equally as risky as the market, and you have $1,400,000 to invest. Consider the following information:
Asset Investment Beta
Stock A $280000 0.80
Stock B $350000 1.25
Stock C 1.50
Risk-free asset
Required:
What is the investment in Stock C? (Do not round your intermediate calculations.) ? ANSWER IS : 512,026 OR 467,716 OR 492,333 OR 472,640 OR 307,222
What is the investment in risk-free asset? (Do not round your intermediate calculations.) ANSWER IS : 266,560 OR 263,784 OR 462,778 OR 288,774 OR 277,667