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You are forming a complete portfolio by investing $1,400. The complete portfolio is composed of Treasury bills that pay 4% and a risky portfolio, P.
You are forming a complete portfolio by investing $1,400. The complete portfolio is composed of Treasury bills that pay 4% and a risky portfolio, P. constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 40% respectively. X has an expected rate of return of 18%, and has an expected rate of return of 14%. To form a complete portfolio with an expected rate of return of 9%, 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. a. 40%; 24%; 16% b.50%; 30%; 20% c. 0%; 60%; 40% d. 32%; 42%; 26%
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