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You Are Considering Investing $1,000 in a Complete Portfolio

Question 75

Multiple Choice

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 2 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%.
-If you decide to hold 25% of your complete portfolio in the risky portfolio and 75% in the treasury bills then the dollar values of your positions in X and Y respectively would be __________ and _________.


A) $300, $450
B) $150, $100
C) $100, $150
D) $450, $300

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