a. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. What is the expected return and standard deviation of your client’s po rtfolio?

b. Suppose your risky portfolio includes the following investments in the given proportions:

Stock A 27%

Stock B 33%

Stock C 40%

What are the investment proportions of your client’s overall portfolio, including the position in T-bills?

c. What is the reward-to-volatility ratio ( S ) of your risky portfolio and your client’s overall por tfolio?

d. Draw the CAL of your portfolio on an expected return/standard deviation diagram.

What is the slope of the CAL? Show the position of your client on your fund’s CAL.

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