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You have $ 5 , 0 0 0 to invest. You decide on a portfolio where you put $ 2 , 0 0 0 into
You have $ to invest. You decide on a portfolio where you put $ into the first bond fund, and $ into the second bond fund. Which of the following is the correct expression for the value of your portfolio at the end of one year? W denotes the value of your portfolio at the end of one year. HINT: X and Y are percentage rates of return, not proportional rates of return. For each asset, the value at the end of one year is the principal what you put into that asset plus the return in dollars, where the return in dollars is a function of the principal and the proportional rate of return.
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