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You are considering investing $1,400 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 4% and a risky portfolio, P,
You are considering investing $1,400 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 4% 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 18%, and Y has an expected rate of return of 14%. To form a complete portfolio with an expected rate of return of 9%, you in the risky portfolio. This will mean you will should invest approximately and of your complete portfolio in also invest approximately security X and Y, respectively. Multiple Choice O 32%; 42%; 26% 50%; 30%; 20% 40%; 24%; 16% 0%; 60%; 40%
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