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Q3. Suppose you have an economy with only two risky assets X and Y. You are given the following information: E(R) 9.168% 12% Security Sigma
Q3. Suppose you have an economy with only two risky assets X and Y. You are given the following information: E(R) 9.168% 12% Security Sigma cov x,y) 0.096 0.10 -0.00905 Suppose you have a risk-free asset (T-bill) that pays 5% and that the proportions to invest in each risky security to form the optimal portfolio (P*) in other words, the portfolio forming the tangency point between the CAL with highest slope and the efficient frontier are: wx-0.5075 and wr-0.4925 . If you want to achieve a rate of return 14% using P* and the T-bill, how much will you invest in each
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