Question


You want to create a portfolio that is as risky (volatile) as the S&P 500, as measured by the performance of the SPY ETF and

A. What is the investment in Stock C? (Do not round intermediate calculations and round your answer to 0 decimal places.)

B. What is the investment in Risk-free asset? (Do not round intermediate calculations and round your answers to 0 decimal places.)

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Answer #1

А 1 Stock Market value 2 A $ 165,000 3 B $ $ 350,000 4 C $383,071 5 Risk free asset $ 101,929 Weights in portfolio 0.165 0.35

D A 1 Stock Market value Weights in portfolio 2A 165000 =+B2/$B$7 3 B 350000 =+B3/$B$7 4 C =+C4*B7 =+E4/D4 5 Risk free asset

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