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

question 46

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%.
-The dollar values of your positions in X,Y,and treasury bills would be _________,__________ and __________ respectively if you decide to hold a complete portfolio that has an expected return of 8%.

• A) $162, $595, $243
• B) $243, $162, $595
• C) $595, $162, $243
• D) $595, $243, $162

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