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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
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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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
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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