Find out the amount of money to be invested

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You have been given a task by your US based client, to construct a Portfolio for an investor willing to invest $1 million but his portfolio would be as risky as the market. This portfolio will have three stocks and a risk free asset. Stock 1 will use $180,000 and its beta is 0.85, Stock 2 will utilize $290,000 of the total money invested and its beta is 1.40. Stock 3's beta is 1.45. Find out the amount of money to be invested in Stock 3 and risk free asset.

Reference no: EM132569374

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