Problem 11.27 – Portfolio As Risky As The Market
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
Determine how to allocate your $1,000,000 investment among Stock A, Stock B, Stock C, and a risk-free asset in order to create a portfolio with the same level of risk as the overall market. Fill in the table with the appropriate investment amounts and betas for each asset.
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Your numbers will vary.