Assume that you manage a risky portfolio with an expected rate of return of 14% and a standard deviation of 29%. The T-bill rate is 4.5%.

Your risky portfolio includes the following investments in the given proportions:

Stock A	27	%
Stock B	41	%
Stock C	32	%

Suppose a 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 11.15%.

Required:

(a)	What is the proportion y? (Round your answer to 1 decimal place.)

Proportion

(b)	What are your client's investment proportions in your three stocks and the T-bill fund? (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Security	Investment Proportions
T-Bills	%
Stock A	%
Stock B	%
Stock C	%

(c)	What is the standard deviation of the rate of return on your client's portfolio? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Standard deviation

%