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You are considering investing $5000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 3% and a risky portfolio, P
You are considering investing $5000 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 55% and 45%, respectively. X has an expected rate of return of 20%, and Y has an expected rate of return of 12%. To form a complete portfolio with an expected rate of return of 15%, how much money should you invest in security X? |
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