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 two 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.
What would be the dollar value of your positions in X, Y, and the T-bills, respectively, if you decide to hold a
Portfolio that has an expected outcome of $1,120?

A) $568; $378; $54
B) $568; $54; $378
C) $378; $54; $568
D) $108; $514; $378
E) Cannot be determined.