Say you want to invest $300,000 in a portfolio of securities. Of that amount, you allocate

$90,000 to a money-market account and the rest in risky assets. The risky assets are stock H and bond N, and you allocate $100,000 to H and the rest to N.

a. Compute the fractions you invested in each asset.

b. Now, compute the fractions (weights) invested in each asset, relative to the total investment budget. Add these percentages up. What is your total?

c. Compute the new weights of each risky asset when you shift $10,000 from stock H to the money-market account.