Assume that you manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 46%. The T-bill rate is 5%.

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

Stock A	30	%
Stock B	30	%
Stock C	40	%

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 14%.

a. What is the proportion y? (Round your answer to 2 decimal places.)

Proportion y

b. What are your client's investment proportions in your three stocks and the T-bill fund? (Round your intermediate calculations and final answers to 2 decimal places.)

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 intermediate calculations and final answer to 2 decimal places.)

Standard deviation % per year