You want to create a portfolio equally as risky as the market, and you have $1,000,000 to

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You want to create a portfolio equally as risky as the market, and you have $1,000,000 to invest. Given this information, fill in the rest of the following table:

Investment Asset Stock A Stock B Stock C Risk-free asset Beta .80 $165,000 $350,000 1.09 1.27

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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Fundamentals of Corporate Finance

ISBN: 978-1260153590

12th edition

Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan

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Question Posted: Jul 17, 2019 11:33 AM

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You want to create a portfolio equally as risky as the market, and you have $1,000,000 to

Question:

Investment Asset Stock A Stock B Stock C Risk-free asset Beta .80 $165,000 $350,000 1.09 1.27

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

Fundamentals of Corporate Finance

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