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Mathematics, 12.10.2019 05:30 jfoster70

You are considering investing $1,000 in a t-bill that pays 0.05 and a risky portfolio, p, constructed with two risky securities, x and y. the weights of x and y in p are 0.60 and 0.40, respectively. x has an expected rate of return of 0.14 and variance of 0.01, and y has an expected rate of return of 0.10 and a variance of 0.0081. if you want to form a portfolio with an expected rate of return of 0.11, what percentages of your money must you invest in the t-bill and p, respectively?

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