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Required: If the real interest rate is 3.70% per year and the expected inflation rate is 1.40%, what is the nominal interest rate according to

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Required: If the real interest rate is 3.70% per year and the expected inflation rate is 1.40%, what is the nominal interest rate according to the Fisher equation (approximated)? (Round your answer to 2 decimal places.) You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, 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%. To form a complete portfolio with an expected rate of return of 8%, you should invest approximately in the risky portfolio. This will mean you will also invest approximately and of your complete portfolio in security X and Y, respectively. Multiple Choice 0%;60%;40% 25%;45%;30% 40%;24%;16% Multiple Choice 0%;60%;40% 25%;45%;30% 40%;24%;16% 50%;30%;20%

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