Question
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P,...
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with 2 risky securities, X and Y. The weights of X and Y in P are 0.60 and 0.40, respectively. X has an expected rate of return of 0.14 and variance of 0.01, and Y has an expected rate of return of 0.10 and a variance of 0.0081.
What would be the dollar value of your positions in the T-bills, X, and Y, respectively, if you decide to hold a portfolio that has an expected outcome of $1,120?
A:%568;$54;$378
B.$108;$514;$378
C:Cannot be determined
D:$378;$54;$568
E:$54;$568;$378
Homework Answers
Answer #1
SEE THE IMAGE. ANY DOUBTS,
FEEL FREE TO ASK. THUMBS UP PLEASE
Not the answer you're looking for?
Similar Questions
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P,...
You are considering investing $1,000 in a T-bill that pays 0.05
and a risky portfolio, P, constructed with two risky
securities, X and Y. The weights of X
and Y in P are 0.60 and 0.40, respectively.
X has an expected rate of return of 0.14 and variance of
0.01, and Y has an expected rate of return of 0.10 and a
variance of 0.0081.
What would be the dollar value of your positions in X,
Y, and the T-bills,...
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P,...
You are considering investing $1,000 in a T-bill that pays 0.05
and a risky portfolio, P, constructed with two risky
securities, X and Y. The weights of X
and Y in P are 0.60 and 0.40, respectively.
X has an expected rate of return of 0.14 and variance of
0.01, and Y has an expected rate of return of 0.10 and a
variance of 0.0081.
What would be the dollar value of your positions in X,
Y, and the T-bills,...
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P,...
You are considering investing $1,000 in a T-bill that pays 0.05
and a risky portfolio, P,
constructed with 2 risky securities, X and Y. The weights of X
and Y in P are 0.60 and 0.40,
respectively. X has an expected rate of return of 0.14 and
variance of 0.01, and Y has an
expected rate of return of 0.10 and a variance of 0.0081. The
coefficient of correlation, rho,
between X and Y is 0.45.
a. If you desire...
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P,...
You are considering investing $1,000 in a T-bill that pays 0.05
and a risky portfolio, P, constructed with 2 risky securities, X
and Y. The weights of X and Y in P are 0.60 and 0.40, respectively.
X has an expected rate of return of 0.14 and variance of 0.01, and
Y has an expected rate of return of 0.10 and a variance of
0.0081.
If you want to form a portfolio with an expected rate of return
of 0.11,...
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P,...
You are considering investing $1,000 in a T-bill that pays 0.05
and a risky portfolio, P, constructed with 2 risky securities, X
and Y. The weights of X and Y in P are 0.60 and 0.40, respectively.
X has an expected rate of return of 0.14 and variance of 0.01, and
Y has an expected rate of return of 0.10 and a variance of
0.0081.
If you want to form a portfolio with an expected rate of return
of 0.10,...
You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P,...
You are considering investing $1,000 in a T-bill that pays 0.05
and a risky portfolio, P, constructed with two risky securities, X
and Y. The weights of X and Y in P are 0.60 and 0.40, respectively.
X has an expected rate of return of 0.14 and variance of 0.01, and
Y has an expected rate of return of 0.10 and a variance of
0.0081.
If you want to form a portfolio with an expected rate of return
of 0.10,...
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury...
You are considering investing $1,000 in a complete portfolio.
The complete portfolio is composed of Treasury bills that pay 2%
and a risky portfolio, P, constructed with two risky securities, X
and Y. The optimal weights of X and Y in P are 40% and 60%,
respectively. X has an expected rate of return of 0.10 and variance
of 0.0081, and Y has an expected rate of return of 0.06 and a
variance of 0.0036. The coefficient of correlation, rho,...
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury...
You are considering investing $1,000 in a complete portfolio.
The complete portfolio is composed of Treasury bills that pay 2%
and a risky portfolio, P, constructed with two risky securities, X
and Y. The optimal weights of X and Y in P are 40% and 60%,
respectively. X has an expected rate of return of 0.10 and variance
of 0.0081, and Y has an expected rate of return of 0.06 and a
variance of 0.0036. The coefficient of correlation, rho,...
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury...
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, 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 10%. The dollar values of your positions
in X, Y and Treasury bills would be...
Show steps and work as u solve it please you are considering investing $1,000 in a...
Show steps and work as u solve it please
you are considering investing $1,000 in a T-bill that pays 0.05
and a risky portfolio, P, constructed with two risky securities, X
and Y. The weights of X and Y in P are 0.65 and 0.35, respectively.
X has an expected rate of return of 0.15 and variance of 0.04, and
Y has an expected rate of return of 0.20 and a variance of 0.0081.
If you want to form a...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 10 minutes ago
asked 12 minutes ago
asked 15 minutes ago
asked 17 minutes ago
asked 17 minutes ago
asked 17 minutes ago
asked 19 minutes ago
asked 26 minutes ago
asked 31 minutes ago
asked 52 minutes ago
asked 58 minutes ago
asked 59 minutes ago