Question
You are considering investing $500 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 3% and a risky portfolio, P,
"You are considering investing $500 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 20% and 80%, respectively. X has an expected rate of return of 5%, and Y has an expected rate of return of 20%. The dollar values of your position in X would be _________, if you decide to hold a complete portfolio that has an expected return of 15%. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."
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