What do these value weights mean for the value of the


A portfolio includes a variety of risky assets and risk-free asset. The sum of the value weights in the risky assets exceed 100 percent. The value weight in the risk-free asset is < 0. What do these value weights mean for the value of the portfolio?

The value of the portfolio is equivalent to the total value of the risky assets.

The value of the portfolio is less than the total value of the risky assets.

The value of the portfolio exceeds the the total value of the risky assets.

None of these answers is correct.

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Financial Management: What do these value weights mean for the value of the
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