Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills.The information below refers to these assets. What are the proportions of stocks A, B, and C, respectively, in Bo's complete portfolio
A)40%, 25%, 35%
B)8%, 5%, 7%
C)32%, 20%, 28%
D)16%, 10%, 14%
E)20%, 12.5%, 17.5%

Question

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills.The information below refers to these assets.  What are the proportions of stocks A, B, and C, respectively, in Bo's complete portfolio
A)40%, 25%, 35% 
B)8%, 5%, 7% 
C)32%, 20%, 28% 
D)16%, 10%, 14% 
E)20%, 12.5%, 17.5%

Quizplus · Accepted Answer

Proportion in A = .8 × 40% = 32%; proportion in B = .8 × 25% = 20%; proportion in C = .8 × 35% = 28%.

Your Client, Bo Regard, Holds a Complete Portfolio That Consists