You are considering investing 1000 in a complete portfolio


You are considering investing $1000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 4% and a risky portfolio, P, constructed with two risky securities X and Y. The optimal weights of X and Y in P are 38% and 62% respectively. X has an expected rate of return of 30%, and Y has an expected rate of return of 60%.

The dollar values of your position in X would be__________? In Y would be _____? and the dollar values of your position in the TBill would be ____________? based upon your decision to hold a complete portfolio that has an expected return of 40%.

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Finance Basics: You are considering investing 1000 in a complete portfolio
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