Ahmad is a portfolio manager at Albani Investment Fund in Riyadh . He manages a portfolio namely Murabahah Fund with a total amount of SR200,000. Assume that this fund has 20% expected return and 25% standard deviation. SAMA has decided that risk free rate is at 5% per year. In the risky asset , Ahmad decided to invest SR50,000 in stock A , SR30,000 in stock B and balace in stock C.

a. calculate the weightage pf risky and risk free asset if ahmed decided to invest SR140,000 in risky portfolio and the balace is in risk free asset.

b. Calculate the weightage stock A, B and C in risky portfolio and risk free as a total portfolio.