How much of your money should be invested in the risky asset

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Reference no: EM131552665

Use the following information for this question, and the next one.

You plan to invest $10,000 in a “complete” portfolio. The complete portfolio is comprised of a risky asset with an expected rate of return of 12% and a standard deviation of 15% and a treasury bill with a rate of return of 5%.

In order to have a “complete” portfolio with an expected rate of return of 9.0%, how much of your money (in dollars) should be invested in the risky asset?

Enter as a number without "$." Consider carrying calculations out to pennies. Thus $5000 would be entered as "5000" or as "5000.00" but NOT as "$5000" and not as "$5,000"

Reference no: EM131552665

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