Assume that you manage a risky portfolio with an expected rate of return of $17\%$ and a standard deviation of $33\%.$ The T$-$bill rate is $6\%.$

Your client chooses to invest $75\%$ of a portfolio in your fund and $25\%$ in a T$-$bill money market fund.

Required:

a$.$ What are the expected return and standard deviation of your client's portfolio? $($Round your answers to $1$ decimal place.$)$

Answer is complete and correct.

b$.$ Suppose your risky portfolio includes the following investments in the given proportions:

What are the investment proportions of your client's overall portfolio, including the position in T$-$bills? $($Round your answers to $1$

decimal place.$)$

Answer is complete and correct.

c$.$ What is the reward$-$to$-$volatility ratio $(S)$ of your risky portfolio and your client's overall portfolio? $($Round your answers to $4$ decimal

places.$)$

Answer is complete but not entirely correct.