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Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is

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Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. Your risky portfolio includes the following investments in the given proportions: Stock A Stock B Stock C 27 % 33% 40 % Your client decides to invest in your risky portfolio a proportion (v) 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 15% a. What is the proportion y? (Round your answer to 1 decimal place.) b. What are your client's investment proportions in your three stocks and the T-bill fund? (Round your answers to 1 decimal place.) Propo T-Bills Stock A Stock B Stock C 30.0 % 18.9 % 23.1 % 28.0 % c. What is the standard deviation of the rate of retum on your client's portfolio? (Round your answer to 1 decimal place.) 1% per year Standard deviation

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