Finance Assignment | Professional Writing
June 3rd, 2020
You are considering investing $2,300 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 4% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 40% respectively. X has an expected rate of return of 14%, and Y has an expected rate of return of 12%. To form a complete portfolio with an expected rate of return of 8%, you should invest approximately __________ in the risky portfolio. This will mean you will also invest approximately __________ and __________ of your complete portfolio in security X and Y, respectively. *No correlation given*
Multiple Choice
- 50%; 30%; 20%
- 43%; 26%; 17%
- 0%; 60%; 40%
- 26%; 46%; 28%
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