G 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

I will invest $220,000

Explanation:

Let the Investment in Stock Cx

Weightage of Investment Cx / 500,000

Weightage beta of Investment Cx (1.52) / 500,000

Total Weightage =

Total Weightage of Beta

Stocks   Investment   Weightage                            Beta    Weighted beta

  A         $147,000    (147000/500,000) = 0.294    0.92    0.27

  B         $133,000    (133000/500,000) = 0.266    1.37     0.36

  B         $220,000   (220000/500,000) = 0.44     1.52     0.67

Total Beta                                                                              1.30

answer; /// egg production using the factory technique falls less than with the free range technique;