Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%.

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 17%.

a.What is the proportiony?(Enter your answer as a decimal number rounded to 2 decimal places.)

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