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 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 clients portfolio?

b) Suppose your risky portfolio includes the following investments in the given proportions:

Stock A	27%
Stock B	33%
Stock C	40%

What are the investment proportions of your clients overall portfolio, including the position in T-bills?

c) What is the reward-to-volatility ratio ( S ) of your risky portfolio and your clients overall portfolio?