You want to create a portfolio equally as risky as the market, and you have $500,000 to

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You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Given this information, fill in the rest of the following table:

Asset............. Investment................... Beta

Stock A............ $120,000...................... .80

Stock B.............. 150,000..................... 1.15

Stock C........................................ .....1.40

Risk-free asset

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Essentials of Corporate Finance

ISBN: 978-0078034756

8th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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