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want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information:     Asset Investment Beta  Stock A $135,000 0.65  Stock B $270,000 1.35  Stock C   1.50  Risk-free asset          Required: (a) What is the investment in Stock C? (Do not round your intermediate calculations.)         (Click to select)   $298,500   $167,500   $310,440   $283,575   $286,560     (b) What is the investment in risk-free asset? (Do not round your intermediate calculations.)         (Click to select)   $196,500   $188,640   $204,360   $327,500   $186,675

want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information:     Asset Investment Beta  Stock A $135,000 0.65  Stock B $270,000 1.35  Stock C   1.50  Risk-free asset          Required: (a) What is the investment in Stock C? (Do not round your intermediate calculations.)         (Click to select)   $298,500   $167,500   $310,440   $283,575   $286,560     (b) What is the investment in risk-free asset? (Do not round your intermediate calculations.)         (Click to select)   $196,500   $188,640   $204,360   $327,500   $186,675

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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ou want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information:

  

 Asset Investment Beta
 Stock A $135,000 0.65
 Stock B $270,000 1.35
 Stock C   1.50
 Risk-free asset    
 

  

Required:
(a) What is the investment in Stock C? (Do not round your intermediate calculations.)
   
    (Click to select)   $298,500   $167,500   $310,440   $283,575   $286,560 

  

(b) What is the investment in risk-free asset? (Do not round your intermediate calculations.)
   
    (Click to select)   $196,500   $188,640   $204,360   $327,500   $186,675 
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