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Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 28%. 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 28%. The T-bill rate is 4% Stock A 20% Stock B 30% Stock C 50% A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 20%. What is the investment proportion, y? (Do not round intermediate calculations. Round your answer to 2 decimal places.) investment proportion y % What is the expected rate or return on the overall portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return %
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