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5. You wish to invest $1000 across a risky asset with an expected rate of return of .31 and a standard deviation of .10, and

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5. You wish to invest $1000 across a risky asset with an expected rate of return of .31 and a standard deviation of .10, and a T-bill with rate of return 13: (a) How much money must you invest in the risky asset to form a portfolio with standard deviation 20? (b) The actual return after the first year on the risky asset is only .25. What trades do you make to rebalance your portfolio to the weights you calculated in the previous part

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