You want to create a portfolio equally as risky as the market, and you have $2,700,000 to invest. Given this information, fill in the rest of the following table: (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Asset Stock A Stock B Stock C Risk-free asset Investment $ 459,000 $783,000 $ $ Beta 1.00 1.40 1.60
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- 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.Capital asset pricing model (CAPM) For the asset shown in the following table, use the capital asset pricing model to find the required return. (Click on the icon here O in order to copy the contents of the data table below into a spreadsheet.) ne Risk-free Market rate, R return, rm Beta, b nts 4% 0.7 1% The required return for the asset is %. (Round to two decimal places.) eТext edia Librai ial Calculat er Resource Enter your answer in the answer box and then click Check Answer. Check Answer mic Study ules Clear All All parts showing 10: DExercise(14); ools > This course (Introduction to Finance (FIN-101-D02) Distance Spring 2021) is hased on Zutter/Smart Princinles of Managerial Finance Rrief Re 4/13 O Type here to search insertYou 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 $ 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 Śou 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 $186,6752. State and graph the appropriate strategies to limit downside risk based on the expected market price performance of underlying asset.)i) (Bullish)ii) (Neutral to bullish)iii) (Bearish)iv) (Neutral to bearish)v) (Extreme volatility) b) Suppose you had just gone long 10 lot of Cerah Bhd stock at a price of RM 20.00 each, for a total investment of RM 20,000. 1 lot = 100 shares. You wish to protect yourself from any short term downside movement in price. Suppose 3-month, at-the-money put and call options on Cerah Bhd stock are being quoted at RM 0.20.)i) Identify the risk exposure you have in stock investment.)ii) (Outline the appropriate strategy to hedge your current position.) iii) (What is your risk profile for the selected strategy?) iv) (Graph the position of your strategy (label all axes/ points)) v) (Calculate the maximum possible loss, maximum profit and break-even point?))
- 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 1.25You 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 $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
- 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 O wherever it is required. Omit $ sign in your response.) Asset Stock A Stock B Stock C Risk-free asset Investment $197,000 $308,000 +A $ +A $ Beta 0.80 1.13 1.29Capital asset pricing model (CAPM) For the asset shown in the following table, use the capital asset pricing model to find the required return. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Risk-free rate, RF 1% The required return for the asset is %. (Round to two decimal places.) C Market return, m 5% Beta, b 0.5K Capital asset pricing model (CAPM) For the asset shown in the following table, use the capital asset pricing model to find the required return. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Risk free rate, Re 2% The required return for the asset is (Round to two decimal places) Market return, f 8% CONTE Beta, b 0.2