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You implemented a buy and hold strategy for a R500 000 treasury bill and R 500 000 equity portfolio. At the end of the year,
You implemented a buy and hold strategy for a R500 000 treasury bill and R 500 000 equity portfolio. At the end of the year, the return on the equity was 15% and the return on the treasury bill was 5%. If the returns of each asset were reinvested by purchasing additional units of the same asset, what is the current allocation?
a. | 50% equity, 50% treasury bill | |
b. | 48% equity, 52% treasury bill | |
c. | 52% equity, 48% treasury bill | |
d. | 65% equity, 55% treasury bill | |
e. | None of the above |
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