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Assume that you manage a risky portfolio with an expected rate of return of 1 8 % and a standard deviation of 4 2 %
Assume that you manage a risky portfolio with an expected rate of return of and a standard deviation of The Tbill rate is
Your client chooses to invest of a portfolio in your fund and in a Tbill money market fund.
Required:
a What are the expected return and standard deviation of your client's portfolio: Round your answers to decimal place.
b Suppose your risky portfolio includes the following investments in the given proportions:
What are the investment proportions of your client's overall portfolio, including the position in Tbills? Round your answers to
decimal place.
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