number 8

8. Ahmad wants to construct a complete portfolio of $60,000. he is planning that the complete portfolio be composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, A and B. The optimal weights of A and B in P are 65% and 35%, respectively. A has an expected rate of return of 12%, and B has an expected rate of return of 14%. In order Ahmad to form a complete portfolio with an expected rate of return of 10%, he should (approximately) invest of his complete portfolio in Treasury bills. * O A) 65% O B) 50% O C)35% OD)20% O E) None of the above