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Question 4: 7 marks You have $1,000,000 to invest in a portfolio which will have the same risk as the market portfolio. Keeping this in mind, complete the following table: Asset Table 3 Investment Beta Stock A $200,000 0.8 Stock B $100,000 Stock C 1.3 1.5 Risk free asset Total investment $1,000,000 Hint: Start by computing the weight for stock C

Question 4: 7 marks You have $1,000,000 to invest in a portfolio which will have the same risk as the market portfolio. Keeping this in mind, complete the following table: Asset Table 3 Investment Beta Stock A $200,000 0.8 Stock B $100,000 Stock C 1.3 1.5 Risk free asset Total investment $1,000,000 Hint: Start by computing the weight for stock C

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question 4: 7 marks You have $1,000,000 to invest in a portfolio which will have the same risk as the market portfolio. Keeping this in mind, complete the following table: Asset Table 3 Investment Beta Stock A $200,000 0.8 Stock B $100,000 Stock C 1.3 1.5 Risk free asset Total investment $1,000,000 Hint: Start by computing the weight for stock C
Transcribed Image Text:Question 4: 7 marks You have $1,000,000 to invest in a portfolio which will have the same risk as the market portfolio. Keeping this in mind, complete the following table: Asset Table 3 Investment Beta Stock A $200,000 0.8 Stock B $100,000 Stock C 1.3 1.5 Risk free asset Total investment $1,000,000 Hint: Start by computing the weight for stock C
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