Question: You can construct a portfolio using TBills (i.e. a risk free asset) and a risky asset (P), TBills yield 2.1%, while the risky asset P
You can construct a portfolio using TBills (i.e. a risk free asset) and a risky asset (P), TBills yield 2.1%, while the risky asset P has an expected return of 11.6% and a risk of 10.3%.
If you have a total of $18,100, how much should you invest in the risky asset so that the expected returb of the combined portfolio is 3.2%
plaase explain each step!! thank you :)
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