What positions in the components would be require to achieve


Problem

You would like to make a portfolio that earns expected annual returns of 6% using the market portfolio and the risk-free security. What positions (weights) in these components would be required to achieve this objective if the market is expected to return 9% and the risk-free rate is 2.5%? Interpret these weights.

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Finance Basics: What positions in the components would be require to achieve
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