Question
You are considering investing $100,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 2% and a risky portfolio, P,
You are considering investing $100,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 2% and a risky portfolio, P, constructed with two risky securities, X and Y. The weight of security X in portfolio P is 35%. Security X has an expected rate of return of 25%, and Y has an expected rate of return of 28%. If you decide to hold a complete portfolio that has an expected return of 11%, find the dollar value invested in asset X. (Do not round your intermediate calculations. Round your final answer to the nearest dollar.)
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