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Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 31%. The T-bill rate is

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Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 31%. The T-bill rate is 4%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. a. What is the expected return and standard deviation of your client's portfolio? (Round your answers to 2 decimal places.) Answer is complete and correct. Expected return 11.7 % per year Standard 21.7 % per year deviation b. Suppose your risky portfolio includes the following investments in the given proportions: Stock A 26% Stock B 33 Stock C 41 What are the investment proportions of your client's overall portfolio, including the position in T-bills? (Round your answers to 1 decimal places.) Answer is complete but not entirely correct. Investment Security Proportions T-Bills 30.0 % Stock A 17.5 % Stock B 24.5% Stock C 28.0%

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