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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	$	134,000	.79
Stock B		146,000	1.24
Stock C			1.39
Risk-free asset

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.)

Investment in Stock C            $

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.)

Investment in risk-free asset            $

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93039042

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