Create a portfolio equally as risky as the market

Assignment Help Financial Management

Reference no: EM13762798

You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Investment Beta Stock A $ 146,000 .91 Stock B $ 134,000 1.36 Stock C 1.51 Risk-free asset Requirement 1: How much will you invest in Stock C? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Investment in Stock C $ Requirement 2: How much will you invest in the risk-free asset? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Investment in risk-free asset $

Reference no: EM13762798

Questions Cloud

Problems on on behavioural health : Describe two biomedical methods(tertiary prevention) or dealing with the health problemthat is downstream methods.

Prepare an income statement in its proper format : Prepare an income statement in its proper format ending on June 30, 2009. You should include the heading and left align it so the formatting is understandable.

How does the setting contribute to characters development : How does the setting contribute to the character's development? How does the setting contribute to the character's experience and give the story more meaning?

Find the estimated cast for a production level : Total costs were $76,700 when $26,000 units were produced and $95,000 when 37,000 units were produced. Use the high-low method to find the estimated cast for a production level of 32,000 units.

Create a portfolio equally as risky as the market : You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: Asset Investment Beta Stock A $ 146,000 .91 Stock B $ 134,000 1.36 Stock C 1.51 Risk-free asset..

Do you think the companys revenue goal is realistic : Explain how purchase of the apple press might affect the company's revenue goals. Based on this information, explain whether Anthony's Orchard should invest in the apple press.

Stock number of shares price expected return : You have a portfolio with the following: Stock Number of Shares Price Expected Return W 775 $ 48 11% X 675 25 15 Y 425 61 13 Z 650 46 14 Required: What is the expected return of your portfolio? (Do not round intermediate calculations. Enter your answ..

Managing a quality merger : Imagine you work for Quality Corporation (Quality.ad) who has just recently bought Crescent Inc. (Crescent.ad) in a recent merger. Quality and Crescent have separate offices in St. Louis (Quality HQ), Little Rock, and Austin (Crescent HQ). Crescen..

Portfolio that is equally invested in the two assets : A stock has a beta of 1.3 and an expected return of 12.8 percent. A risk-free asset currently earns 4.3 percent. Required: (a) What is the expected return on a portfolio that is equally invested in the two assets?

User Account

All Pages