The risky portfolio is composed of 3 assets, H, N, and X. Your original allocation to each asset is 30% in H, 50% in N, and 20% in X. Now answer the questions below. a. If you want to allocate $700 to the risky assets, what would be the expected return and risk of your overall portfolio? b. What would be the investment percentages of each risky asset in your overall portfolio, including the allocation to the Treasury bill? What is the total allocation of assets in your overall portfolio? c. Graph your capital allocation line and show your risky portfolio’s point.
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