Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How to calculate the optimal weight of a T-bill in a portfolio consisting of 10 stocks and 1 T-Bill? I have to create a portfolio
How to calculate the optimal weight of a T-bill in a portfolio consisting of 10 stocks and 1 T-Bill?
I have to create a portfolio consisting 10 stocks( random) plus 1 t bill. I was able to do almost all the work and find the optimal weight of the risky portfolio which came out to be 418.38%. not sure if this is correct but I'm not sure how to calculate optimal weight of the tbill in the portfolio. I think it should be 1-418.38% but not sure. please help. thanks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started