Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 39%. The T-bill rate is 6%. Your client choses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund.

A) What are the expected return and standard deviation of your client's portfolio?

Expected Return:

Standard Deviation:

B)

Stock A	23%
Stock B	32%
Stock C	45%

What are the investment portfolios of your clients overall portfolio, including the position in T-Bills?