You want to create a portfolio equally as risky as the market and you have $1 million

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You want to create a portfolio equally as risky as the market and you have $1 million to invest. Given this information, fill in the rest of the following table:

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Corporate Finance

ISBN: 9781260772388

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Question Posted: Nov 14, 2022 03:17 AM

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You want to create a portfolio equally as risky as the market and you have $1 million

Question:

Asset Stock A Stock B Stock C Risk-free asset Investment $195,000 $365,000 Beta .80 1.09 1.23

Step by Step Answer:

We know the total portfolio value and the investment in two stocks in the portfolio so we can find t...View the full answer

Corporate Finance

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