Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill rate is 6%.

Your risky portfolio includes the following investments in the given proportions:

Stock A 23%

Stock B 32%

Stock C 45%

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 9%.

a.What is the proportiony?(Round your answer to 3 decimal places.)

Proportiony_______

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

Security InvestmentProportions

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 calculationsand final answer to 2 decimal places.)

Standard deviation% per year