Question
Your complete portfolio is composed of Treasury bills that pay 6% and the optimal risky portfolio, constructed with two risky securities, A and B. Suppose
Your complete portfolio is composed of Treasury bills that pay 6% and the optimal risky portfolio, constructed with two risky securities, A and B. Suppose the optimal weights of A and B are 60% and 40% respectively. A has an expected rate of return of 14%, and B has an expected rate of return of 9%. If you want to form a complete portfolio with an expected rate of return of 8%, you should invest approximately __________ in this optimal risky portfolio. This also means you will invest approximately __________ and __________ of your complete portfolio in security X and Y, respectively.
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