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Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 44%. The T-bill rate is
Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 44%. The T-bill rate is 5%.
Your client chooses to invest 80% of a portfolio in your fund and 20% in a T-bill money market fund.
Suppose your risky portfolio includes the following investments in the given proportions: |
Stock A | 28% |
Stock B | 37% |
Stock C | 35% |
What are the investment proportions of your clients overall portfolio, including the position in T-bills, in T-bills? (Enter your answer as a decimal number rounded to four decimal places.) |
Security | Investment Proportions |
T-Bills | ? |
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