You are creating a portfolio that mimics a fully diversified market index. Assume you have $2 million fund to invest. You plan to allocate $200,000 and $365,000 of your fund to invest in stock A and B, respectively. To achieve your goal, you need to add an additional risky stock C and a risk-free bond to your portfolio. How much would you invest in stock C and risk-free bond?

Answer rating: 100% (QA)

FULL EXPLANATION To create a fully diversified portfolio youll want to allocate weight... View the full answer