Question: please explain eaxh step :) thank you for the help! You can construct a portfolio using TBills (i.e. a risk free asset) and a riskv
please explain eaxh step :) thank you for the help!
You can construct a portfolio using TBills (i.e. a risk free asset) and a riskv asset (p).
TBills yield 1.6%, while the risky asset P has an expected return of 12.4% and a risk of 7.8%.
If you have a total of $20,100, how much should you invest in the risky asset so that the expected return of the combined portfolio is 15.4%? (shorting is allowed in this scenario)
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