# please Answer All Work In Detail And Please Show Formulas You Use, College Essay Help Free

Please answer all work in detail and please show formulas you use, thank you.

You are considering investing \$1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 40% and 60%, respectively. X has an expected rate of return of 0.12 and variance of 0.0081, and Y has an expected rate of return of 0.09 and a variance of 0.0016. The coefficient of correlation, rho, between X and Y is 0.45. If you decide to hold a complete portfolio that has an expected outcome of \$1,180

a. What will be the dollar values of your positions in X, Y, and Treasury bills, respectively? (10%)

b. What is the risk for the risky portfolio P (10%)?

c. What is the SR for the risky portfolio P (5%)?

d. What is the risk for this complete portfolio C (5%)? (Hint: risk in complete portfolio C is the product of y (the weight in P) and the risk of P.

e. What is the SR for this complete portfolio C (5%)? 