Question: Heather plans to construct a (complete) portfolio from the T-Bills and a Vanguard index fund so that the portfolio expected return is 20%. Assume that

Heather plans to construct a (complete) portfolio from the T-Bills and a Vanguard index fund so that the portfolio expected return is 20%. Assume that the T-Bill rate is 4%. The Vanguard fund has an expected return of 16% and a standard deviation of 18%. In order to achieve this target return of 20%, the weight of the Vanguard fund in her complete portfolio should be ______.

122%

133%

90%

100%

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