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b. Suppose that your risky portfolio includes the following investments in these proportions: Stock A: 27% Stock B: 33% Stock C: 40% What are the

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b. Suppose that your risky portfolio includes the following investments in these proportions: Stock A: 27% Stock B: 33% Stock C: 40% What are the investment proportions in your client's overall portfolio including the position in T- bills? c. Suppose your client decides to invest in your portfolio a proportion y of her total investment budget so that the overall portfolio will have an expected rate of return of 15%. i. What is the proportion y? ii. What are your client's investment proportions in your three stocks and the T-bill fund? iii. What is the standard deviation of the return on your client's portfolio? d. Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 20%. i. What is the investment proportion y? ii. What is the expected rate of return on the overall portfolio

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