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 60% and 40% respectively. x has an expected rate of return of 14%, and y has an expected rate of return of 10%. to form a complete portfolio with an expected rate of return of 8%, you should invest approximately in the risky portfolio. this will mean you will also invest approximately and of your complete portfolio in security x and y, respectively. a. 0%; 60%; 40% b. 25%; 45%; 30% c. 40%; 24%; 16% d. 50%; 30%; 20%

(There is typo error in question option c is C. 59.5%; 24.3%; 16.2%)

The correct answer is C. 59.5%; 24.3%; 16.2%.

Explanation:

This question requires us to tell what combination of investment will generate 8% return on our porffolio. To find out we will evaluate each option given in the question.

A. 0%; 60%; 40%

Return = 0% * 5% + 60% * 14% + 40%*10%

           = 12.4%

B. 25%; 45%; 30%

Return = 25% * 5% + 45% * 14% + 30%*10%

           = 10.55%

C. 59.5%; 24.3%; 16.2%

Return = 40% * 5% + 24% * 14% + 16%*10%

           = 8%

D. 50%; 30%; 20%

Return = 50% * 5% + 30% * 14% + 20%*10%

           = 8.7%

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

d) social security number

let me know if i am correct or not, so i can edit the answer.