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CAN I GET THIS DONE IN EXCEL PLEASE 2. Assume that you manage a risky portfolio with an expected rate of return of 17% and
CAN I GET THIS DONE IN EXCEL PLEASE
2. Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. Suppose your client prefers to invest in your portfolio 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%. a. What is the investment proportion, y? b. What is the expected rate of return on the overall portfolio? c. What is the Sharpe ratio (S) of your risky portfolio and your client's overall portfolioStep by Step Solution
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