You want to create a portfolio equally as risky as the market, and you have $50 invest. Information about the possible investments is given below: Asset Stock A Stock B Stock C Risk-free asset Investment $135,000 $145,000 Beta .80 1.25 1.40 How much will you invest in Stock C? How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

You want to create a portfolio equally as risky as the market, and you have $50 invest. Information about the possible investments is given below: Asset Stock A Stock B Stock C Risk-free asset Investment $135,000 $145,000 Beta .80 1.25 1.40 How much will you invest in Stock C? How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 7MC: Write out the equation for the Capital Market Line (CML), and draw it on the graph. Interpret the...

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