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Jade invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and
Jade invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. A portfolio that has an expected value in 1 year of $11,000 (i.e. 10% return). Calculate the percent of the money invested in the risky portfolio and the percent of money invested in the risk-free asset
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