You invest $2,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 30% and a Treasury bill with a rate of return of 6%. $_ of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 21%.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You invest $2,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 30% and a
Treasury bill with a rate of return of 6%. $
of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard
deviation of 21%.
1400
Transcribed Image Text:You invest $2,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 30% and a Treasury bill with a rate of return of 6%. $ of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 21%. 1400
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