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c. You manage a mutual fund with an expected return of 16% and a standard deviation of 25%. The T-bill rate is 3%. Suppose your
c. You manage a mutual fund with an expected return of 16% and a standard deviation of 25%. The T-bill rate is 3%. Suppose your client decides to invest in your mutual fund a proportion (y) of his total investment budget so that his overall portfolio will have a standard deviation of 12%. i. What is the proportion y? (2 marks) ii. What is the expected return of your clients portfolio? (2 marks
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