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Mr. Hans Valen has $100,000 to invest in the shares of Daggenhours Ltd., Frankie Trading Ltd., and / or a risk-free asset and he will
Mr. Hans Valen has $100,000 to invest in the shares of Daggenhours Ltd., Frankie Trading Ltd., and / or a risk-free asset and he will invest all his available funds. The portfolios expected return is 12.75%. Hans will invest $50,000 in Daggenhours Ltd. at a likely return of 17%, with Frankie Trading and the risk free rate having likely returns of 10% and 6% respectively. Given this, how much will Hans invest in Frankie Trading?
Group of answer choices
$16,000
$10,000
between $10,000 and $16,000
none of the given answers
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