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18 Jan 2018
You want to create a portfolio equally as risky as the market (i.e, a portfolio with beta equal to 1), and you have $1,000,000 to invest. Given this information, fill in the rest of the following table:
Asset
Investment
Beta
Stock A
$200,000
.70
Stock B
$250,000
1.10
Stock C
1.60
Risk-free asset
You want to create a portfolio equally as risky as the market (i.e, a portfolio with beta equal to 1), and you have $1,000,000 to invest. Given this information, fill in the rest of the following table:
Asset | Investment | Beta |
Stock A | $200,000 | .70 |
Stock B | $250,000 | 1.10 |
Stock C | 1.60 | |
Risk-free asset |
Irving HeathcoteLv2
18 Jan 2018