You are considering investing $2,100 in a complete portfolio. The complete portfolio is composed of Treasury bills t pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in re 75% and 25% respectively. X las an expected rate of return of 12%, and Y has an expected rate of return of . To form a complete portfolio with an expected rate of return of 8%, you should invest approximately he risky portfolio. This will mean you will also invest approximately tfolio in security X and Y, respectively. and of your complete 0%, 75%, 25% 50%, 38%, 13% 48%, 36%, 12% 21%, 63%, 16%
You are considering investing $2,100 in a complete portfolio. The complete portfolio is composed of Treasury bills t pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in re 75% and 25% respectively. X las an expected rate of return of 12%, and Y has an expected rate of return of . To form a complete portfolio with an expected rate of return of 8%, you should invest approximately he risky portfolio. This will mean you will also invest approximately tfolio in security X and Y, respectively. and of your complete 0%, 75%, 25% 50%, 38%, 13% 48%, 36%, 12% 21%, 63%, 16%
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 5P
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