Assume that you manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 34%. The T-bill rate is 6%.

Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolios standard deviation will not exceed 19%.

a.	What is the investment proportion, y? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Investment proportion y

%

b.	What is the expected rate of return on the complete portfolio? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Rate of return

%