The jy company has a portfolio with a total market value of 600,000, of which 180,000 is allocated to ready asset money market fund, which is effectively risk free for practical purposes. The remaining 420,000 is invested in risky securities 226,800 in equities (E) and the balance in long-term bonds (B). The equities and bond holdings companies the Ricky portfolio. Determine: A. The equities and bond holdings composition of the risky portfolio B. The weight of the equity investment to the global portfolio C. The weight Of the risky portfolio, P,. In the complete portfolio, including risk-free and risky investments. D. The weight of each asset in the complete portfolio

$w_E = \frac{\text{Value of Equities}}{\text{Total Value of Risky Portfolio}} = \frac{\$226,800}{\$420,000} = 0.54$

$w_B = \frac{\text{Value of Bonds}}{\text{Total Value of Risky Portfolio}} = \frac{\$193,200}{\$420,000} = 0.46$ The composition of the risky portfolio is 54% equities and 46% bonds.

B) The weight of the equity investment to the global portfolio.
The global portfolio has a total market value of \600,000$.

$w_{\text{Equity, Global}} = \frac{\text{Value of Equities}}{\text{Total Market Value}} = \frac{\$226,800}{\$600,000} = 0.378$ The weight of the equity investment to the global portfolio is 0.378 or 37.8%.

C) The weight of the risky portfolio, P, in the complete portfolio, including risk-free and risky investments.
The complete portfolio has a total market value of \600,000$. The risky portfolio has a value of$$420,000$.

$w_P = \frac{\text{Value of Risky Portfolio}}{\text{Total Market Value}} = \frac{\$420,000}{\$600,000} = 0.70$ The weight of the risky portfolio in the complete portfolio is 0.70 or 70%.

D) The weight of each asset in the complete portfolio.
The complete portfolio has a total market value of \600,000$. The assets are risk-free, equities, and bonds.

$w_{\text{Risk-Free}} = \frac{\text{Value of Risk-Free Asset}}{\text{Total Market Value}} = \frac{\$180,000}{\$600,000} = 0.30$

$w_{\text{Equities}} = \frac{\text{Value of Equities}}{\text{Total Market Value}} = \frac{\$226,800}{\$600,000} = 0.378$

$w_{\text{Bonds}} = \frac{\text{Value of Bonds}}{\text{Total Market Value}} = \frac{\$193,200}{\$600,000} = 0.322$ The weights of each asset in the complete portfolio are:
Risk-free asset: 0.30 or 30%
Equities: 0.378 or 37.8%
Bonds: 0.322 or 32.2%

Summary of results:
A. The equities and bond holdings composition of the risky portfolio:
Equities: $\boxed{\text{0.54}}$
Bonds: $\boxed{\text{0.46}}$
B. The weight of the equity investment to the global portfolio: $\boxed{\text{0.378}}$
C. The weight of the risky portfolio, P, in the complete portfolio: $\boxed{\text{0.70}}$
D. The weight of each asset in the complete portfolio:
Risk-free asset: $\boxed{\text{0.30}}$
Equities: $\boxed{\text{0.378}}$
Bonds: $\boxed{\text{0.322}}$