Question
Brian is more risk averse than Sara. Both investors form their complete portfolios out of a risk-free asset and a risky portfolio. Brians complete portfolio
Brian is more risk averse than Sara. Both investors form their complete portfolios out of a risk-free asset and a risky portfolio. Brians complete portfolio is worth $1000 and Saras complete portfolio is worth $2000. Which one of the following portfolios could be their optimal complete portfolios?
Brian invests $500 in the risky portfolio and Sara invests $1000 in the risky portfolio. | ||
Brian invests $200 in the risky portfolio and Sara invests $0 in the risky portfolio. | ||
Brian invests $400 in the risky portfolio and Sara invests $1500 in the risky portfolio. | ||
Brian invests $800 in the risky portfolio and Sara invests $800 in the risky portfolio. |
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