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You are considering investing $1millionin a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P ,
You are considering investing $1millionin a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio,P, constructed with two risky securities, X and Y. The optimal weights of X and Y inPare 60% and 40%, respectively. X has an expected rate of return of 14%, and Y has an expected rate of return of 10%. Calculate the percentage you should invest of your complete portfolio in Treasury bills to form a complete portfolio with an expected rate of return of 11%
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