There are only 2 risky assets in the market. Stock A with 100 shares outstanding and the price per share of $120, and stock B with 150 shares outstanding and the price per share of $80. According to the CAPM, if an investor invests $1000 in the optimal risky portfolio, how much does she invest in each of the 2 risky assets? $500 in stock A and $500 in stock B $400 in stock A and $600 in stock B $200 in stock A and $800 in stock B $700 in stock A and $300 in stock B

There are only 2 risky assets in the market. Stock A with 100 shares outstanding and the price per share of $120, and stock B with 150 shares outstanding and the price per share of $80. According to the CAPM, if an investor invests $1000 in the optimal risky portfolio, how much does she invest in each of the 2 risky assets? $500 in stock A and $500 in stock B $400 in stock A and $600 in stock B $200 in stock A and $800 in stock B $700 in stock A and $300 in stock B

Name: 8? QUESTION 8There are only 2 risky assets in the market. Stock A with
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Description: 8? QUESTION 8There are only 2 risky assets in the market. Stock A with 100 sharesoutstanding and the price per share of $120, and stock B with 150 sharesoutstanding and the price per share of $80. According to the CAPM, if aninvestor invests $1000 in

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 4PROB

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