11) 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 11%, you should invest __________ of your complete portfolio in Treasury bills. *

a) 29%

b) 25%

c) 36%

d) 50%

None of the above

12) An investor holds the following portfolio. What is the portfolio's beta? *

a) 1.5

b) 1.1

c) 1.7

d) 1.3

None of the above