A complete portfolio with an expected return of 12% is composed of Treasury billsand a risky portfolio P of two stocks, X and Y. The weight of Xin P is 40%. The T-billrate is 5%, while the expected returns of X and Y are 18% and 25%, respectively.What is the weight of T-bills in the complete portfolio?39.7%43.3%51.8%59.3%

Let's break down the calculation:Weight of the Risky Portfolio: Since the complete portfolio…

Answered: A complete portfolio with an expected…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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