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a Tamer Ahmad, a senior portfolio Manager, manages a portfolio which is consisting of risky and risk-free assets. Mr. Hunter, a client, wants to invest

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a Tamer Ahmad, a senior portfolio Manager, manages a portfolio which is consisting of risky and risk-free assets. Mr. Hunter, a client, wants to invest in Tamer's portfolio. Tamer has provided you with the following table: Risk-free rate 6% 15% Standard deviation for the client Expected return on the overall portfolio 16% Risk on the overall portfolio 23% 1. What is the proportion "Y" invested by the client? OA) 65.2% B) 68% C) 70% OD) None of the above 2. What is the expected return of Mr. Hunter? OA) 13% B) 12.5% C) 16% D) None of the above 3. Assume that Mr. Hunter requires a minimum return of 14%, by how much would the proportion "y" change? * O A) It would increase by 14.7% B) It would increase by 50.00% C) It would increase by 34.7% D) It would increase by 4.7% E) None of the above

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