Question

You are considering investing $100,000 in a complete portfolio. The complete portfolio is composed of Treasury notes that pay 1% 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 10% and Y has an expected rate of return of 6%. To form a complete portfolio with an expected rate of return of 4%, 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. Group of answer choices

25%, 45%, 30%. 50%, 30%, 20%. 0%, 60%, 40%. 60%, 24%, 16%. 40%, 24%, 16%. PreviousNext

Answer #1

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...

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 2 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%. To form a complete portfolio with
an expected rate of return of 11%, you...

You are considering investing $2900 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 75% and 25% respectively. X
has an expected rate of return of 16.0%, and Y has an expected rate
of return of 13%. To form a complete portfolio with an expected
rate of return of 10%, you...

You are considering investing $1,200 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 70% and 30% respectively. X has an expected rate of return of
13%, and Y has an expected rate of return of 12%. To form a
complete portfolio with an expected rate of return of 8%, you...

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%. To form a complete portfolio with
an expected rate of return of 11%, you...

You are considering investing $1,700 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 75% and 25% respectively. X has an expected rate of return of
13%, and Y has an expected rate of return of 10%. To form a
complete portfolio with an expected rate of return of 7%, you...

You are considering investing $1,300 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 65% and 35% respectively. X has an expected rate of return of
17%, and Y has an expected rate of return of 12%. To form a
complete portfolio with an expected rate of return of 8%, you...

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...

You are considering investing $1,000 in a portfolio. The
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 are 60% and 40%, respectively. X has
an expected rate of return of 14%, and Y has an expected rate of
return of 10%. To form a portfolio with an expected rate of return
of 11%, you should invest __________ percent...

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,...

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