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Assume that you manage a risky portfolio with an expected rate of return of 13% and a standard deviation of 23%. The T-bill rate is
Assume that you manage a risky portfolio with an expected rate of return of 13% and a standard deviation of 23%. The T-bill rate is 3%. Your client chooses to invest 75% of a portfolio in your fund and 25% in a T-bill money market fund.
Suppose your risky portfolio includes the following investments in the given proportions:
Stock A 20%
Stock B 30%
Stock C 50%
What are the investment proportions for your client's portfolio, including the proportion for , , , and the ?
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