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Can someone help me determine the correct responses to this question? Assume that you manage a risky portfolio with an expected rate of return of
Can someone help me determine the correct responses to this question?
Assume that you manage a risky portfolio with an expected rate of return of 13% and a standard deviation of 29%. The T-bill rate is 5%. Your client chooses to invest 75% of a portfolio in your fund and 25% in a T-bill money market fund. a. What is the expected return and standard deviation of your client's portfolio? (Enter your answer as a percentage rounded to two decimal places.) Expected return Standard deviation % per year % per year b. Suppose your risky portfolio includes the following investments in the given proportions: Stock A Stock B Stock C 22% 31% 47% What are the investment proportions of your client's overall portfolio, including the position in T-bills? (Enter your answer as a percentage rounded to two decimal places.) Security T-Bills Stock A Stock B Stock C Investment Proportions % % % % c. What is the reward-to-volatility ratio (9) of your risky portfolio and your client's overall portfolio? (Enter your answer as a decimal rounded to 4 decimal places.) Reward-to-Volatility Ratio Your risky portfolio Client's overall portfolio
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