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Assume that you manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 30%. The T-bill rate is
Assume that you manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 30%. The T-bill rate is 4%. Your risky portfolio includes the following investments in the given proportions Stock A Stock B Stock C 45% 35 % 20% Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 16%. a. What is the proportion y? (Round your answer to the nearest whole number. Omit the "%" sign in your response.) Proportion y b. What are your client's investment proportions in your three stocks and the T-bill fund? (Do not round intermediate calculations. Round your answers to 2 decimal place. Omit the "%" sign in your response.) 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? (Do not round intermediate calculations. Round your answer to 2 decimal place. Omit the "%" sign in your response.) Standard deviation
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