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Billy has $1000 and is considering investing in a CP (complete portfolio). This CP (complete portfolio) is composed of Bills from the government that
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Billy has $1000 and is considering investing in a CP (complete portfolio). This CP (complete portfolio) is composed of Bills from the government that pay 2.4% and a, A (risky portfolio), made up of two risky securities B and C. The optimal weights of B and C is 60% and 40%. C's expected rate of return is 14% and B's expected rate is 10%. In order to form a complete portfolio with expected rate of return to be 11%, how much should Billy invest in the governments billsStep by Step Solution
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