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qn. you are considering investing $1000 in a complete portfolio. the complete portfolio is composed of treasury notes that pay 5% and a risky poryfolio,

qn. you are considering investing $1000 in a complete portfolio. the complete portfolio is composed of treasury notes that pay 5% and a risky poryfolio, P, constructed with two risky securities X and Y.

The optimal weights of X and Y in P are 60% and 40% respectively. X has an expected rate of return of 14% and Y has an expected rate of return of 10%.

required,

1. assume that you wish to obtain an expected return of11% from your complete portfolio, calculate the investment proportions of your overall portfolio .

2. What would your investment proportions of your complete portfolio if your expected return from the complete portfolio is 60%?

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