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Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 35%. The T-bill rate is

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Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 35%. The T-bill rate is 4.5%. Your risky portfolio includes the following investments in the given proportions: Stock A Stock B Stock C 34% 37 29 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 that his overall portfolio will have an expected rate of return of 16%. a. What is the proportion y? (Round your answer to 1 decimal places.) Proportion y % b. What are your client's investment proportions in your three stocks and in T-bills? (Round your intermediate calculations and final answers to 2 decimal places.) Investment Proportions % Security T-Bills Stock A 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 1 decimal places.) Standard deviation % per year

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