Question
You are considering investing $1,800 in a portfolio. The portfolio is composed of risk free asset (Treasury bills) that pay 4% and a risky asset,
You are considering investing $1,800 in a portfolio. The portfolio is composed of risk free asset (Treasury bills) that pay 4% and a risky asset, A, that has an expected rate of return of 11.8%.
To form your portfolio with an expected rate of return of 7%, you should invest approximately __________ in the risky portfolio.
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
