Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 44%. The T-bill rate is 5%. Your client chooses to invest 80% of a portfolio in your fund and 20% in a T-bill money market fund.

a.	What is the expected return and standard deviation of your client's portfolio? (Enter your answer as a percentage rounded to two decimal places.)

Expected return	% per year
Standard deviation	% per year

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

Stock A	28%
Stock B	37%
Stock C	35%

What are the investment proportions of your clients overall portfolio, including the position in T-bills? (Enter your answer as a percentage rounded to two decimal places.)

Security	Investment Proportions
T-Bills		%
Stock A		%
Stock B		%
Stock C		%

c.	What is the reward-to-volatility ratio (S) of your risky portfolio and your client's overall portfolio? (Enter your answer as a decimal rounded to 4 decimal places.)

	Reward-to-Volatility Ratio
Your risky portfolio
Clients overall portfolio