What fraction of jims money must he invest in risky asset

Reference no: EM133616868

Problem: Jim Beam invests $100 in a portfolio of risky assets that has an expected return of 15% and a standard deviation of returns of 15%. He invests the remainder of his money in US Treasury Bills that yield 7.5% a year. What fraction of Jim's money must he invest in the risky asset portfolio to form a portfolio with an expected return on 12%? Jim Beam invests $100 in a portfolio of risky assets that has an expected return of 15% and a standard deviation of returns of 15%. He invests the remainder of his money in US Treasury Bills that yield 7.5% a year. What fraction of Jim's money must he invest in the risky asset portfolio to form a portfolio with an expected return on 12%?

Reference no: EM133616868

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