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James wants to form a portfolio, among T-bills, Microsoft and Coca-Cola, which has an expected return of 15.8%. Suppose the interest rate of the T-bills
James wants to form a portfolio, among T-bills, Microsoft and Coca-Cola, which has an expected return of 15.8%. Suppose the interest rate of the T-bills is 3.8%. By the mean-variance criteria, how should James invest in each asset in order to best achieve the goal?
He would invest ____% into the T-bills, ____% into Microsoft, and ____% into Coca-Cola.
Hint: in order to achieve the maximal Sharpe ratio, the portfolio needs to be on the efficient frontier.
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