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You invest $1,007 portfolio holding a risky asset and a Treasury bill. You expect the portfolio to reach a value of $1,118 in 1 year.
You invest $1,007 portfolio holding a risky asset and a Treasury bill. You expect the portfolio to reach a value of $1,118 in 1 year.
Expected Return of Risky Asset: 20%
Standard Deviation of Risky Assets: 7%
Expected Return of Treasury Bill: 3%
This is only possible if the weight of the risky asset is ____________________________.
*Please round to the nearest two decimals.
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