Question
1. 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,
1. 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%. If you decide to hold 70% of your complete portfolio in the risky portfolio and 30% in the Treasury bills, then the dollar values of your positions in X and Y, respectively, would be __________ and _________. $100; $150 $360; $240 $420; $280 $150; $100
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