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Business, 08.04.2021 15:40 Knownothing

You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of treasury bills that pay 5% and a risk portfolio, P, constructed with two risk securities, X, and Y. The optimal weights of X and Y in P are 60% and 40% respectively. X has an expected return of 14%, and Y has an expected rate of return of 10%. To form a complete portfolio with an expected return of 8%, you should invest approximately in the risk portfolio. This will mean you will also invest approximately and of your complete portfolio in security X and Y, respectively. $0, -$600, $400 $750, $450, $300 $500, $300, $200 $450, $300, $250

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