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Problem:

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 Investment Beta Stock A $ 146,000 .91 Stocks B $ 134,000 1.36 Stock C 1.51 Risk-free assets.

Required:

Question 1: How much will you invest in Stock C?

Question 2: How much will you invest in the risk-free asset?

Note: Explain all steps comprehensively.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174183

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