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 a return volatility of 25%, and Y has a return volatility of 30%. The correlation between X and Y is -0.2. If you decide to hold a complete portfolio that has a return volatility of 15%, how much should you invest in the Treasury bills?

		$687
		$220
		$1,000
		$130

There are only 3 assets to invest in, all being risky. AAPL has an expected return of 10% and volatility of 15%. MSFT has an expected return of 12% and volatility of 18%. TSLA has an expected return of 20% and volatility of 30%. Investors can form risky portfolios out of these 3 assets. Which one of the following statements is correct?

		On the expected return-volatility space, the set of all feasible risky portfolios is a curve that goes through the 3 risky assets.
		100% invested in MSFT is an inefficient portfolio.
		100% invested in TSLA is an efficient portfolio.
		On the expected return-volatility space, the set of all feasible risky portfolios is a curve that does not go through any of the 3 risky assets.

Which of the following statements is correct, according to portfolio theory?

		An investors risk aversion level should determine the capital allocation to the risky portfolio.
		The optimal risky portfolio is one with the highest expected return.
		An investors risk aversion level should determine the optimal risky portfolio.
		All investors will invest in the same optimal complete portfolio.

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 35% and 65% 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 14%, 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.

		78%; 27%; 51%
		25%; 45%; 30%
		140%; 49%; 91%
		50%; 25%; 25%

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%. If you decide to hold 70% of your complete portfolio in the risky portfolio and 30% in the Treasury bills, then the dollar values of your positions in X and Y, respectively, would be __________ and _________.

		$150; $100
		$420; $280
		$360; $240
		$100; $150