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 |
$ |
132,000 |
|
.77 |
Stock B |
|
148,000 |
|
1.22 |
Stock C |
|
1.37 |
Risk-free asset |
|
|
How much will you invest in Stock C? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Investment in Stock C $
How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Investment in risk-free asset $