2) Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 26%. The T-bill rate is 2% 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 portfolio? b. Suppose your risky portfolio includes the following investments in the given proportions. 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 ( Sharpe ratio ) of your risky portfolio and your client's overall portfolio? 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. 3) Suppose the same client in the previous problem decides to invest in your risky portfolio a proportion ( y ) of his total investment budget so that his overall portfolio will have an expected rate of return of 24%. (Use the portfolio and risk free return data from above.) a. What is the proportion y? b. What are your client's investment proportions in your three stocks and the T-bill fund? c. What is the standard deviation of the rate of return on your client's portfolio? 4) Suppose the same client as in the previous problem prefers to invest in your portfolio a proportion ( y ) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 18%. (Use the portfolio and risk free return data from 3)) a. What is the investment proportion, y ? b. What is the expected rate of return on the overall portfolio