You are considering investing 1000 in a complete portfolio


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%. X has an expected rate of return of 14%, and Y has an expected rate of return of 10%. What will be the dollar values of your positions in X, Y, and Treasury bills, respectively, if you decide to hold a complete portfolio that has an expected return of 8%?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You are considering investing 1000 in a complete portfolio
Reference No:- TGS02677502

Expected delivery within 24 Hours