(Solved): A risky portfolio is made up of Stock \( A \) and Stock B. The optimal weights of Stock \( A \) an ...

A risky portfolio is made up of Stock \( A \) and Stock B. The optimal weights of Stock \( A \) and Stock B are \( 30 \% \) and \( 70 \% \), respectively. Stock \( A \) has an expected rate of return of \( 12 \% \), and Stock B has an expected rate of return of \( 9 \% \). Treasury bills pay \( 4.20 \% \). What proportion (weight) should be invested in the Treasury Bill to form a complete portfolio with an expected rate of return of \( 9.25 \% \) ? Multiple Choice \( 19 \% \) \( 11 \% \) \( 10 \% \) \( 8 \% \)