Question
In: Finance
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury...
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 40%, respectively. X has an expected rate of return of 14%, and Y has an expected rate of return of 10%. To form a complete portfolio with an expected rate of return of 9.7%, you should invest ________ of your complete portfolio in Treasury bills.
Multiple Choice
-
50%
-
36%
-
19%
-
25%
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury...
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and a risky portfolio, P, constructed with two risky securities, X
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Y. The optimal weights of X and Y in P are 40% and 60%,
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return of 0.12 and variance of 0.0081, and Y has an expected
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You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury...
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and a risky portfolio, P, constructed with two risky securities, X
and Y. The optimal weights of X and Y in P are 60% and 40%,
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Multiple Choice
place 40% of your money in the risky portfolio and the rest in
the risk-free asset
place 55%...
Need to see this on worked out, thanks You are considering investing $1,000 in a complete...
Need to see this on worked out, thanks
You are considering investing $1,000 in a complete portfolio.
The complete portfolio is composed of Treasury bills that pay 5%
and a risky portfolio, P, constructed with two risky securities, X
and Y. The optimal weights of X and Y in P are 60% and 40%,
respectively. X has an expected rate of return of 14%, and Y has an
expected rate of return of 10%. The dollar values of your positions...
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