You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of...
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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 two 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%. To form a complete portfolio with an expected rate of return of 9.7%, you should invest ________ of your complete portfolio in Treasury bills.
Multiple Choice
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50%
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36%
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19%
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25%
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