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 3% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 80% and 20%, respectively. X has an expected rate of return of 12%, and Y has an expected rate of return of 7%. 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 9%

a) $500, $150, $350

b) $150, $500, $350

c) $150, $600, $250

d) $600, $150, $250

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Financial Management: You are considering investing 1000 in a complete portfolio
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