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Assume that you manage a risky portfolio with an expected rate of return of 18% 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 18% and a standard deviation of 30%. The T-bill rate is 6%. Your client chooses to invest 65% of a portfolio in your fund and 35% in an essentially risk-free money market fund.
Suppose that your risky portfolio includes the following investments in the given proportions:
Stock A | 29 | % |
Stock B | 32 | % |
Stock C | 39 | % |
What are the investment proportions of your clients overall portfolio, including the position in T-bills? (Round your answers to 1 decimal place.)
Investment Proportions | ||
T-Bills | % | |
Stock A | % | |
Stock B | % | |
Stock C | % | |
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