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Assume that you manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 41%. The T-bill rate is

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Assume that you manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 41%. The T-bill rate is 4%. Your risky portfolio includes the following investments in the given proportions Stock A 25% Stock B 34 Stock C 41 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 16% Required: a. What is the proportion y? (Round your answer to 1 decimal place.) Proportion y b. What are your client's investment proportions in your three stocks and in T-bills? (Round your Intermediate calculations and final answers to 2 decimal places.) Investment Security Proportions T-Bis Stock A Stock B Stock C % c. What is the standard deviation of the rate of return on your client's portfolio? (Round your Intermediate calculations and final answer to 1 decimal place.) Standard deviation % per year %

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