You want to create a portfolio equally as risky as the market, and you have $250,000 to invest. Given this information, fill in the three missing pieces of information in the following table. Show your calculations: Investment Beta 0.90 1.25 Asset Stock A Stock B Stock C Risk-Free Asset $50,000 $70,000 1.60

You want to create a portfolio equally as risky as the market, and you have $250,000 to invest. Given this information, fill in the three missing pieces of information in the following table. Show your calculations: Investment Beta 0.90 1.25 Asset Stock A Stock B Stock C Risk-Free Asset $50,000 $70,000 1.60

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You want to create a portfolio equally as risky as the market, and you have $1,200,000 to invest. Consider the following information: Asset Stock A Stock B Stock C Risk-free asset What is the investment in Stock C? Investment Investment $300,000 $ 240,000 Investment Beta 0.70 1.10 1.50 What is the investment in risk-free asset?
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: (Do not round intermediate calculations. Round the final answers to the nearest whole number. Do not leave any empty spaces; input a 0 wherever it is required. Omit $ sign in your response.) Asset Investment Beta Stock A $200,000 0.80 Stock B $ 305,000 1.13 Stock C $ 1.29 Risk - free asset Ś
You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: Asset Annual Return Probability Beta Proportion X 10% 0.50 1.2 0.333 Y 8% 0.25 1.6 0.333 Z 16% 0.25 2.0 0.333 Given the information in Table 5.2, The beta of the portfolio in Table 8.2, containing assets X, Y, and Z is ________. Select one: a. 1.6 b. 2.0 c. 1.5 d. 2.4
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 Stock A Stock B Stock C Risk-free asset Investment $135,000 $145,000 Beta .80 1.25 1.40 How much will you invest in Stock C? How much will you invest in the risk-free asset? Investment in Stock C Investment in risk-free asset (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
You want to create a portfolio equally as risky as the market, and you have $1,600,000 to invest. Given this information, fill in the rest of the following table: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Asset Stock A Stock B Stock C Risk-free asset $ $ Investment 288,000 512,000 Beta 0.80 1.00 1.25
You want to create a portfolio equally as risky as the market, and you have $1,200,000 to invest. Consider the following information: Asset Investment Beta Stock A $300,000 0.70 Stock B $360,000 1.25 Stock C 1.55 Risk-free asset Required: (a) What is the investment in Stock C? (Do not round your intermediate calculations.) (b) What is the investment in risk-free asset? (Do not round your intermediate calculations.)
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: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Asset Stock A Stock B Stock C Risk-free asset Investment Beta $ 195,000 $ 340,000 $ $ 0.90 1.15 1.23
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: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Asset Stock A Stock B Stock C Risk-free asset $ $ Investment 120,000 220,000 Betal 1.00 1.20 1.40
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 $ 147,000 .92 Stock B $ 133,000 1.37 Stock C 1.52 Risk - free asset How much will you invest in Stock C? How much will you invest in the risk - free asset? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
ou want to create a portfolio equally as risky as the market, and you have $900,000 to invest. Consider the following information: Asset Investment Beta Stock A $135,000 0.65 Stock B $270,000 1.35 Stock C 1.50 Risk-free asset Required: (a) What is the investment in Stock C? (Do not round your intermediate calculations.) (Click to select) $298,500 $167,500 $310,440 $283,575 $286,560 (b) What is the investment in risk-free asset? (Do not round your intermediate calculations.) (Click to select) $196,500 $188,640 $204,360 $327,500 $186,675
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 Stock A Stock B Stock C Risk-free asset Investment $ 146,000 $134,000 Beta .91 1.36 1.51 How much will you invest in Stock C? How much will you invest in the risk-free asset? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Investment in Stock C Investment in risk-free asset
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: Investment $137,000 $143,000 Asset Stock A Stock B Stock C Risk-free asset Beta .82 1.27 1.42 How much will you invest in Stock C? How much will you invest in the risk-free asset? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Investment in Stock C Investment in risk-free asset

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