You Are Considering Investing $1,000 in a Complete Portfolio

question 75

Multiple Choice

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 2 risky securities X and Y. The optimal weights of X and Y in P are 60% and 40% respectively. X has an expected rate of return of 14% and Y has an expected rate of return of 10%.
-If you decide to hold 25% of your complete portfolio in the risky portfolio and 75% in the treasury bills then the dollar values of your positions in X and Y respectively would be __________ and _________.

• A) $300, $450
• B) $150, $100
• C) $100, $150
• D) $450, $300

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Definitions:

Kinetic Conditions

Conditions that affect the rate of a chemical reaction, focusing on temperature and concentration of reactants.

Organic Reaction

A chemical reaction involving organic compounds, contributing to the formation or breaking of carbon-based chemical bonds.

Cycloaddition

A chemical reaction in which two or more unsaturated molecules (or parts of the same molecule) combine to form a cyclic product.

HOMO/LUMO Interaction

Refers to the interaction between the Highest Occupied Molecular Orbital (HOMO) of one molecule and the Lowest Unoccupied Molecular Orbital (LUMO) of another molecule, important in determining the outcome of chemical reactions.