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You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury...

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Finance

You are considering investing $1,000 in a complete portfolio.The complete portfolio is composed of Treasury bills that pay 5%and a risky portfolio, P, constructed with two risky securities, Xand 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 anexpected rate of return of 10%. The dollar values of your positionsin X, Y, and Treasury bills would be _________, __________, and__________, respectively, if you decide to hold a completeportfolio that has an expected return of 8%.

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Weight of X 06 Weight of Y 04 Expected return of Optimal risky portfolio Weight of XExpected return of XWeight of YExpected return of Y Expected return of Optimal    See Answer
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You are considering investing $1,000 in a complete portfolio.The complete portfolio is composed of Treasury bills that pay 5%and a risky portfolio, P, constructed with two risky securities, Xand 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 anexpected rate of return of 10%. The dollar values of your positionsin X, Y, and Treasury bills would be _________, __________, and__________, respectively, if you decide to hold a completeportfolio that has an expected return of 8%.

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