At the beginning of the year I have $125,000 to invest. I build my optimal portfolio by doing careful capital allocation. 65% goes into an Index ETF, while 35% goes into Secure (risk-free) assets. Over the year, the index ETF earns 9.9%, while the risk-free asset earns 2.4%. Calculate the new total value of my portfolio, and calculate the new weight of the Index ETF in my portfolio? (your answer should be the new weight) (Give your answer as a percentage with 2 decimals, e.g., if the result of your calculations is 0.345224 (or 34.5224%), enter 34.52 as your answer.)
At the beginning of the year I have $125,000 to invest. I build my optimal portfolio by doing careful capital allocation. 65% goes into an Index ETF, while 35% goes into Secure (risk-free) assets. Over the year, the index ETF earns 9.9%, while the risk-free asset earns 2.4%. Calculate the new total value of my portfolio, and calculate the new weight of the Index ETF in my portfolio? (your answer should be the new weight) (Give your answer as a percentage with 2 decimals, e.g., if the result of your calculations is 0.345224 (or 34.5224%), enter 34.52 as your answer.)
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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Transcribed Image Text:At the beginning of the year I have $125,000 to invest. I build my optimal portfolio by doing careful
capital allocation. 65% goes into an Index ETF, while 35% goes into Secure (risk-free) assets.
Over the year, the index ETF earns 9.9%, while the risk-free asset earns 2.4%.
Calculate the new total value of my portfolio, and calculate the new weight of the Index ETF in my
portfolio?
(your answer should be the new weight)
(Give your answer as a percentage with 2 decimals, e.g., if the result of your calculations is 0.345224
(or 34.5224%), enter 34.52 as your answer.)
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