Question
Need some help with this one, thanks You are considering investing $2,400 in a complete portfolio. The complete portfolio is composed of Treasury bills that
Need some help with this one, thanks
You are considering investing $2,400 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 8% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 75% and 25% respectively. X has an expected rate of return of 15%, and Y has an expected rate of return of 12%. To form a complete portfolio with an expected rate of return of 11%, you should invest approximately __________ in the risky portfolio. This will mean you will also invest approximately __________ and __________ of your complete portfolio in security X and Y, respectively.
48%; 36%; 12%
50%; 38%; 13%
27%; 60%; 13%
0%; 75%; 25%
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