2. Assume that the total market value of an initial portfolio is $500,000 of which $190,000 is invested in the risk free asset. The remaining $310,000 is invested in a risky securities which consists $185,000 in stock and $125,000 in long term bond.

(a) Calculate the composition of stock and bond in risky portfolio?

(b) Calculate the weight of the risky and risk free portfolio in the complete portfolio (C):

(c) Calculate the weights of each asset class (stock, bond and risk free) in the complete portfolio.