Question 19 7 pts Portfolio involves borrowing 70% at the risk-free rate and investing all funds equally in a long position in Portfolio X and a long margined position in AAL. Calculate the weights for Portfolio C. a) The percent invested in Portfolio x wy- b) The percent invested in AAL, WI- % and c) The percent invested in the risk-free asset, W. % Question 20 7 pts Determine the return on Portfolio C? a) Return on Portfolio X, RI % b) Return on a long margined position in AAL, RAL c) Return on d) Return on Portfolio C, Rp Verdana Merge & Center Conditional Format Cell Formatting as Table Styles Paste BIU C3 ] D F B t ROPC (PX) ROPC Kohl's ROPCK Sparks Network 15.96 16.09 17.37 14.65 12.32 11.53 14.30 14.62 15.18 SPK 62.16 75.22 41.47 41.48 43.52 39.77 46.2 37.39 38.31 G . Security Price Data Am. ROPCAAL 1/15/28 3.75% TBond Airlines 35.84 105.8300 28.31 105.7127 41.01 105.0071 41.00 105.7764 38.99 105.6717 42.35 105.5346 35.50 107.3021 42.26 105.6177 41.22 106.0625 AAL 1 Table 15.1 Date 2 3 Today: 15-Sep 4 22-Sep 5 6 6 od 7 13-Oct 8 20-Oct 27-Oct 10 3-Nov 11 10 NOV 12 13 14 15 Table 15.2 16 Date 17 15-Sep 18 10-Nov 19 20 Table 15.3 Security 21 22 AAL 23 Sparks 24 Kohl's 25 T-bill 26 27 28 29 30 31 32 33 34 35 Maturity 1/15/28 1/15/28 T-Bond Quotation Bid Asked 105.1500 105.8300 106.0200 106.0625 Coupon 3.75 3.75 risk-free rate is 2.55% Chg -0.0078 -0.0001 Asked Yid 3.12 3.03 Interim Cashflows Qt Div = 120 Qt Div - 5 Ot Div - 250 Rf 2.55% Securities Div Pald Margins 1-Nov IM 52% 13-Oct IMS - 60% 29-Sep 3-Nov 37 38 39 40