Question
You are considering investing $1,800 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 4% and a risky portfolio, P,
You are considering investing $1,800 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 13%, and Y has an expected rate of return of 10%. To form a complete portfolio with an expected rate of return of 7%, 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.
A 0 , 60 , 40
B 50, 30, 20
C 23, 47, 30
D 38, 23,15
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