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Your portfolio of risky assets (P) consists of $67,000 in a Stock Fund and $33,000 in a Bond Fund. Your complete portfolio (C) has an
Your portfolio of risky assets (P) consists of $67,000 in a Stock Fund and $33,000 in a Bond Fund. Your complete portfolio (C) has an allocation of 80% in the risky portfolio and 20% in the risk-free asset.
a. Determine the weight for the Stock Fund and the Bond Fund in the risky portfolio.
b. Determine the weight for each asset class in the complete portfolio.
c. What is the total value of the complete portfolio?
d. What dollar amount is in each asset class in the complete portfolio?
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