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 return of the combined portfolio is 3.2%?

Answer rating: 100% (QA)

To determine the allocation between the riskfree asset TBills and the risky asset P in order to achi... View the full answer