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#2 only E Cannot be determined. 2. You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with

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E Cannot be determined. 2. You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with two risky securities, X and Y. The weights of X and Y in Pare 0.60 and 0.40, respectively, X has an expected rate of return of 0.14 and variance of 0.01, and Y has an expected rate of return of 0.10 and a variance of 0.0081. What would be the dollar values of your positions in X and Y, respectively, if you decide to hold 40% of your money in the risky portfolio and 60% in T-bills? A. $240; $360 B. $360; $240 C. $100: $240 D. $240; $160 E. Cannot be determined. 3. A reward-to-volatility ratio is useful in A. measuring the standard deviation of returns. Bunderstanding how returns increase relative to risk increases. C. analyzing returns on variable-rate bonds D. assessing the effects of inflation E. None of the options are correct

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