You Are Considering Investing $1,000 in a T-Bill That Pays

Multiple Choice

You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio,P,constructed with 2 risky securities,X and Y.The weights of X and Y in P are 0.60 and 0.40,respectively.X has an expected rate of return of 0.14 and variance of 0.01,and Y has an expected rate of return of 0.10 and a variance of 0.0081.If you want to form a portfolio with an expected rate of return of 0.10,what percentages of your money must you invest in the T-bill,X,and Y,respectively if you keep X and Y in the same proportions to each other as in portfolio P?

A) 0.25;0.45;0.30
B) 0.19;0.49;0.32
C) 0.32;0.41;0.27
D) 0.50;0.30;0.20
E) cannot be determined