QUESTION $14$

$-$Consider a Treasury bill with a rate of return of $2\mathrm{.}5\%$ and the following risky securities; Security A: $E(r)=0\mathrm{.}18$; variance $=0\mathrm{.}05$;$5$ curity B: E$($r$)=0\mathrm{.}005$; variance $=0,0225$ ; Security $C$:$E(r)=0\mathrm{.}1$; variance $=0\mathrm{.}02$; Security $D$:$E(r)=0\mathrm{.}25$; variance $=0\mathrm{.}25.$ The investor must develop a complete portfolio by combining the risk$-$free asset with one of the securities mentioned above. The security the inwestor should choose as part of her complete portfolio to achieve the best CAL would be

$\backslash$table$[[$A$],[$B$],[$C$],[$D$]]$

QUESTION $15$

"You are considering investing $$1000$ in a complete portfolio. The complete portfolio is composed of Treasury bills that pay $446$ and a risky portfolio, $P,$ constructed with two risky securities$,x$ and $Y.$ The optimal weights of $x$ and $Y$ in $P$ are $50\%$ and $50\%,$ respectively. $x$ has an expected rate of return of $15\%,$ and $Y$ has an expected rate of return of $20\%.$ The dollar values of your position in $x$ would be if you decide to hold a complete portfolio that has an expected return af $15\%.$ Note: Express vour answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."