How much will you invest in the risk-free asset

Assignment Help Financial Management

Reference no: EM132052477

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	$	138,000	.83
Stock B		142,000	1.28
Stock C			1.43
Risk-free asset

How much will you invest in Stock C? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Investment in Stock C $

How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Investment in risk-free asset $

Reference no: EM132052477

Questions Cloud

Occurrence of seismic events to the different plate : Relate the occurrence of seismic events to the different plate boundaries. Which boundary types have the deepest and largest magnitude earthquakes?

Do you need to deposit today to reach your goal : If you can earn 5.6 percent, compounded annually on your savings, how much do you need to deposit today to reach your goal?

Carbon dioxide levels in the atmosphere are rising : A) Carbon dioxide levels in the atmosphere are rising as a direct result of man-made CO2 emissions from the burning of fossil fuel.

What will your monthly payment be : You want to buy a new sports car from Muscle Motors for $75,000. The contract is in the form of a 48-month annuity due at an APR of 7.1 percent.

How much will you invest in the risk-free asset : You want to create a portfolio equally as risky as the market, and you have $500,000 to invest.

How do the actions of people threaten coastal areas : In what ways to people try to modify or stabilize the coastal environment? How do the actions of people threaten coastal areas?

Impact the global distribution of arid lands : How might changes in the configuration of the Earth's tectonic plates significantly impact the global distribution of arid lands? What about glacial environment

How much money must you put in a savings account today : If you want to have $875 in 36 months, how much money must you put in a savings account today?

What is the velocity of a stream : What is the velocity (in feet per second) of a stream with a discharge of 2,000 cubic feet per second and a cross-sectional area of 100 square feet?

User Account

All Pages