Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you want to create a portfolio equally as risky as

You want to create a portfolio equally as risky as the market, and you have $1,400,000...

70.2K

Verified Solution

Question

Finance

You want to create a portfolio equally as risky as the market,and you have $1,400,000 to invest. Consider the followinginformation: Asset Investment Beta Stock A $350,000 0.75 Stock B$280,000 1.10 Stock C 1.55 Risk-free asset Required: (a) What isthe investment in Stock C? (Do not round your intermediatecalculations.) (b) What is the investment in risk-free asset? (Donot round your intermediate calculations.)

Answer & Explanation Solved by verified expert
3.8 Ratings (636 Votes)
Total Stock A B value Value of Stock A Value of Stock B 350000280000 630000 Weight of Stock A Value of Stock ATotal Stock A B Value 350000630000 05556 Weight of Stock B Value of Stock BTotal Stock A B Value 280000630000 04444 Beta of Stock A B Weight of Stock ABeta    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

You want to create a portfolio equally as risky as the market,and you have $1,400,000 to invest. Consider the followinginformation: Asset Investment Beta Stock A $350,000 0.75 Stock B$280,000 1.10 Stock C 1.55 Risk-free asset Required: (a) What isthe investment in Stock C? (Do not round your intermediatecalculations.) (b) What is the investment in risk-free asset? (Donot round your intermediate calculations.)

Other questions asked by students

Q

1. Machinists pre-emption is a labor law doctrine. This doctrine: A: Permits both the National Labor Relations...

General Management
Q

12 Two identical capacitors A and B are charged to the same potential V and...

Physics
Q

your answer in response area For CORRECT answer you will be awarded 4 Marks and...

Physics
Q

Solve for x Round to the nearest tenth if necessary F 4 69 X E

Geometry
Q

Solve 5ax + 6ax = 7ax+8 for x. Assume a0.O A. x = 2/aO B....

Basic Math
Q

a Find the average value of f x x 3 on the interval 2 5...

Calculus
Q

Using Newton Raphson Method find the approximate solution to the equation ex 2 2cosx 6...

Algebra
Q

perrot industries has $325,000 to invest. Perrot industries has $325,000...

Accounting
Q

There are TWO (2) questions. Answer ALL questions. QUESTION 1 Apply Newton's method to solve...

Accounting
Q

A company establishes a petty cash fund on April 3 for $500. By the end...

Accounting
Q

Solve for the missing information designated by ?" in the following table. (Use 365 days...

Accounting
Q

The books of Marigold Corporation carried the following account balances as of December 31,2025. Account...

Accounting