Question
You are considering investing $1,900 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 3% and a risky portfolio, P,
You are considering investing $1,900 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 3% and a risky portfolio, P, 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 15%, and Y has an expected rate of return of 10%. To form a complete portfolio with an expected rate of return of 6%, 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.
50%; 33%;
18% 29%; '
19%; 10%
25%; 50%
; 25% 0%;
65%; 35%
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