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 Stock A Stock B Stock C Risk-free asset Investment $ 145,000 $ 135,000 Investment in Stock C Investment in risk free asset Beta .90 How much will you invest in Stock C? How much will you invest in the risk-free asset? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. 1.35 1.50 Answer is complete but not entirely correct. 134,691 78 85,308 22 $
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 Stock A Stock B Stock C Risk-free asset Investment $ 145,000 $ 135,000 Investment in Stock C Investment in risk free asset Beta .90 How much will you invest in Stock C? How much will you invest in the risk-free asset? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. 1.35 1.50 Answer is complete but not entirely correct. 134,691 78 85,308 22 $
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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Transcribed Image Text: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
Stock A
Stock B
Stock C
Risk-free asset
Investment
$ 145,000
$ 135,000
Investment in Stock C
Investment in risk-free
asset
How much will you invest in Stock C? How much will you invest in the risk free asset?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Beta
.90
Answer is complete but not entirely correct.
134,691 78
85,308 22
$
1.35
1.50
S
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