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:

Bedside Table

A small table that is typically placed beside a bed to hold items such as medication, a lamp, or personal items for easy accessibility.

Liquid Medications

Medicinal substances in liquid form intended for oral ingestion, injection, or another form of administration.

Needleless Syringe

A medical device designed to inject substances into the body or withdraw fluids without the use of a needle, minimizing pain and risk of needle-stick injuries.

IV Route

A method of administering medications or fluids directly into a vein, often used in healthcare settings for its rapid effects.