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Business, 15.01.2020 18:31 Dmend4

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 11%, you should invest of your complete portfolio in treasury bills.

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