Question
you are considering investing 1300 in a complete portfolio. the complete portfolio is composed of treasury bills and that pay 5% and a risky portfolio,
you are considering investing 1300 in a complete portfolio. the complete portfolio is composed of treasury bills and that pay 5% and a risky portfolio, constructed with two risky securities, X and Y. The optimal weights of X and Y in p are 65% and 35% respectively. X has an expected rate of return of 17% and Y has an expected rate of return of 12%. 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. (in percentages)
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