Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 31%. The T-bill rate is 5%

Stock A26%Stock B33%Stock C41%

A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 20%.

a.What is the investment proportion,y?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

b.What is the expected rate of return on the overall portfolio?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

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