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QUESTION 16 You are considering investing $1,000 in a T-bill that paya 0.06 and a risky portfolio, P. constructed with two risky securities X and

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QUESTION 16 "You are considering investing $1,000 in a T-bill that paya 0.06 and a risky portfolio, P. constructed with two risky securities X and Y. The weights of X and Y in Para 0.30 and 0.70, respectively. X has an expected rate of return of 0.04 and variance of 0.05, and has an expected rate of return of 0.10 and a variance of 0.23. What would be the dollar value of your positions in Xif you decide to hold a portfolio that has an expected return of 7.2%? O a $163.64 b. $900.00 O c. $572.00 O d. $381.82 QUESTION 17 Year Suppose that all investors expect that the spot rates for the years will be as follows. Whats the price of a 4-year 10.2% coupon bond with par $1,0007 Spot rate 5% 1 2 790 896 O a $1,081.19 b. $1,074.40 O c. $346.16 O d. $1,309.07

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