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: Investment Asset Stock A Stock B Stock C Risk-free asset $ 85,000 $165,000 Beta .80 1.15 1.40 a. 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.) b.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.)
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: Investment Asset Stock A Stock B Stock C Risk-free asset $ 85,000 $165,000 Beta .80 1.15 1.40 a. 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.) b.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.)
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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f1.
Subjenct :- Finance
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
a.
b.
$ 85,000
$165,000
a. 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.)
b.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.)
Beta
.80
1.15
1.40
Investment in Stock C
Investment in risk-free asset
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