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 investments in the given proportions:

Stock A	26	%
Stock B	35	%
Stock C	39	%

Your client decides to invest in your risky portfolio a proportion (y) 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 2 decimal places.)

Proportion y

b.	What are your client's investment proportions in your three stocks and the T-bill fund? (Round your intermediate calculations and final answers to 2 decimal places.)

Security	Investment Proportions
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 2 decimal places.)

Standard deviation

% per year