Question
assume that you manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 42% The T- bill rate
assume that you manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 42% The T- bill rate is 4%. your risky portfolio includes the following STOCK A 26%,STOCK B 35%, STOCK C 39%. your client decide to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in T bill money market fund so that his overall portfolio will have an expected rate of return of 16% .1 what is the proportion y? 2. what are your client investments proportion in your three stock and T Bill's. show working please.
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