1) You are gonna invest $2 500 in a risk free asset that pays 5% and a risky portfolio, P, constructed with 2 risky securities, X and Y. The weights of X and Y in P are 0.60 and 0.40, respectively. X has an expected rate of return of 14% and variance of 0.01, and Y has an expected rate of return of 10% and a variance of 0.0081. If you want to form a portfolio with an expected rate of return of 10%, what percentages of your money must you invest in a risk free asset, X, and Y, respectively if you keep X and Y in the same proportions to each other as in portfolio P?

A) 0.25; 0.45; 0.30 B) 0.19; 0.49; 0.32 C) 0.50; 0.30; 0.20 D) 0.32; 0.41; 0.27 E) cannot be determined