Assume that you manage a risky portfolio with an expected rate of return of

$17\%$ and a standard deviation of $27\%.$ The Tbill rate is $7\%.$

a$.$ A client prefers to invest in your portfolio a proportion $($y$)$ so that his

complete portfolio's standard deviation is $20\%.$ What is his investment

proportion, y$?$ What is the expected rate of return on this complete portfolio?

b$.$ SAssume that you manage a risky portfolio with an expected rate of return of

$17\%$ and a standard deviation of $27\%.$ The Tbill rate is $7\%.$

a$.$ A client prefers to invest in your portfolio a proportion $($y$)$ so that his

complete portfolio's standard deviation is $20\%.$ What is his investment

proportion, y$?$ What is the expected rate of return on this complete portfolio?

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

proportions:

Stock A $27\%$

Stock B $33\%$

Stock C $40\%$ppose your risky portfolio includes the following investments in the given

proportions:

Stock A $27\%$

Stock B $33\%$

Stock C $40\%$