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:

Asset Investment Beta Stock A $265,000 .87 Stock B $390,000 1.18 Stock C 1.30 Risk-free asset

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Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Nov 13, 2020 05:04 AM

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

Question:

Asset Investment Beta Stock A $265,000 .87 Stock B $390,000 1.18 Stock C 1.30 Risk-free asset

Step by Step Answer:

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

Corporate Finance Core Principles And Applications

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