You are considering investing 1000 in a compete portfolio


1. You are considering Investing $1000 in a compete portfolio. the compete portfolio is composed of treasury bills that pay 5% and a risky portfolio, P, constructed with 2 risky securities x and y. the weight of x and y in p are 60% and 40% respectively. x has an expected rate of return of 14% and y 10%. to form a complete portfolio with an expected return of 8%, how much should you invest in the Tbills x and y respectively?

a. 59.46, 24.32, 16.22

b. 55.20, 27.80, 45.0

c. 24.32, 55.45, 20.23

d. none

2. You invest 55% of your money in security a with a beta of 1.4 and the rest of your money in security b with a beta of .9. the beta of the resulting portfolio is

a. 1.466

b. 1.157

c. .968

d. 1.082

e. 1.175

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You are considering investing 1000 in a compete portfolio
Reference No:- TGS02738575

Expected delivery within 24 Hours