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Assume that you manage a risky portfolio with an expected rate of return of 2 0 % and a standard deviation of 4 2 %
Assume that you manage a risky portfolio with an expected rate of return of and a standard
deviation of The Tbill rate is
Your risky portfolio includes the following investments in the given proportions:
Stock A
Stock B
Stock C
Your client decides to invest in your risky portfolio a proportion y of his total investment budget with
the remainder in a Tbill money market fund so that his overall portfolio will have an expected rate of
return of
a What is the proportion yRound your answer to decimal place.
b What are your client's investment proportions in your three stocks and in Tbills? Round your
intermediate calculations and final answers to decimal places.
c What is the standard deviation of the rate of return on your client's portfolio
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