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You are considering investing $10,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P
You are considering investing $10,000 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, R and T. The optimal weights of R and T in P are 60% and 40%, respectively. R has an expected rate of return of 14%, and T has an expected rate of return of 10%. To form a complete portfolio with an expected rate of return of 11%, you should invest Answer of your complete portfolio in Treasury bills.
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