1. (6 points) You invest 40% in a risky portfolio, and 60% in a treasury bill. The risky portfolio has an expected return of 15% and a standard deviation of 25%. The treasury bill pays 7%. Suppose that your risky portfolio includes the following investments in the given proportions:

Stock A 30% Stock B 30% Stock C 30%

Stock D 10%

1. (a) (3 points) What are the investment proportions in the complete portfolio, including stock A, B, C, D and the Treasury bill?

2. (b) (3 points) What is the expected return and standard deviation of your complete portfolio?