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35 Assume that you manage a risky portfolio with an expected rate of retum of 15% and a standard deviation of 29%. The T-bill rate
35
Assume that you manage a risky portfolio with an expected rate of retum of 15% and a standard deviation of 29%. The T-bill rate is 5% Your risky portfolio includes the following investments in the given proportions: Stock A Stock B Stock C 22% 31% 47% Your client decides to invest in your risky portfolio a proportion (1) of his total investment budget with the remainder in a T-bill money market fund so tha expected rate of return of 12%. a. What is the proportion ? (Round your answer to 3 decimal places.) Proportion y b. What are your client's investment proportions in your three stocks and the T-bil fund? (Round your intermediate calculations and final answers to Investment Security Proportions 25 % Stock A T-Bills % Stock B % Stock C c. What is the standard deviation of the rate of return on your client's portfolio? (Round your intermediate calculations and final answer to 2 decimal pla Standard deviation % per your Step by Step Solution
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