5? QUESTION 5You are considering investing $1,000 in a complete portfolio. Thecomplete portfolio is composed of Treasury bills that pay 5% and a riskyportfolio, P, constructed with two risky securities, X and Y. The optimalweights of X and Y in P are 60% and 40%, respectively. X has anexpected rate of return of 14%, and Y has an expected rate of return of10%. If you decide to hold 70% of your complete portfolio in the riskyportfolio and 30% in the Treasury bills, then the dollar values of yourpositions in X and Y, respectively, would beand$420; $280$360; $240$150; $100$100; $150

Total investment = $1000 Investment consists of 70% risky portfolio and 30% treasury bills Risky…

QUESTION 5 You are considering investing $1,000 in a complete portfolio. complete portfolio is composed of Treasury bills that pay 5% and a ri portfolio, P, constructed with two risky securities, X and Y. The optin weights of X and Y in P are 60% and 40%, respectively. X has expected rate of return of 14%, and Y has an expected rate of return 10%. If you decide to hold 70% of your complete portfolio in the ris portfolio and 30% in the Treasury bills, then the dollar values of yo positions in X and Y, respectively, would be a O$420; $280 $360; $240 O $150; $100 $100; $150

QUESTION 5 You are considering investing $1,000 in a complete portfolio. complete portfolio is composed of Treasury bills that pay 5% and a ri portfolio, P, constructed with two risky securities, X and Y. The optin weights of X and Y in P are 60% and 40%, respectively. X has expected rate of return of 14%, and Y has an expected rate of return 10%. If you decide to hold 70% of your complete portfolio in the ris portfolio and 30% in the Treasury bills, then the dollar values of yo positions in X and Y, respectively, would be a O$420; $280 $360; $240 O $150; $100 $100; $150

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 16P

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