Title: Investment in a Treasury ETF or Treasury bill and 30 Randomly-chosen Stocks

Contents

(1) Create a portfolio using 50% risk-free asset and 50% of the market portfolio.

With $500,000 of the portfolio earnings, invest in a Treasury ETF or Treasury bill that mimics the risk-free rate.

With $500,000 of the portfolio funds, invest in 30 randomly-chosen stocks. According to your readings, after 30 stocks, a portfolio is fully diversified and all nonsystematic risk should be removed.

(2) Explain why you chose the asset and stocks

Number of words: 1,061 (3.5 pages)