Let investment in C=$x
Hence investment in risk free asset=1,000,000-(195,000+340,000+x)=$(465,000-x)
Portfolio beta=Respective beta*Respective weight
1=(195,000/1,000,000*0.9)+(340,000/1,000,000*1.15)+(x/1,000,000*1.29)+(465,000-x)/1,000,000*0[Beta of market=1;Beta of risk-free assets=0]
1=0.5665+(x/1,000,000*1.29)
x=(1-0.5665)*1,000,000/1.29
=$336047(Approx)=investment in C
Investment in risk free asset=$(465,000-x)
=$128953(Approx)
Beta of risk free assets=0
Problem 13-24 Analyzing a Portfolio (LO2] You want to create a portfolio equally as risky as...
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