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
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:QUESTION 5
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%. If you decide to hold 70% of your complete portfolio in the risky
portfolio and 30% in the Treasury bills, then the dollar values of your
positions in X and Y, respectively, would be
and
$420; $280
$360; $240
$150; $100
$100; $150
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