Question 20

5 Points

58	Here are several portfolio metrics:
59	Risk Free Rate	5.50%
60	Expected Return on a Risky Asset Portfolio	23.56%
61	Expected Return on the Entire Portfolio	18.96%
62
63	In order to have an Entire Portfolio with an Expected Return of 18.96%,
64	what percentage must you invest in the risky assets and risk free assets of the portfolio?
65	Use the model	y = [E(rc) - rf] / [E(rp) - rf]

Risky Assets in Portfolio = 75.00% and Risk-Free Assets in Portfolio = 35.00%

Risky Assets in Portfolio = 64.53% and Risk-Free Assets in Portfolio = 35.47%

Risky Assets in Portfolio = 74.53% and Risk-Free Assets in Portfolio = 25.47%

Risky Assets in Portfolio = 25.47% and Risk-Free Assets in Portfolio = 74.53%