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can you please solve all parts You manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 31%.
can you please solve all parts
You manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 31%. The T-bill rate is 2%. Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolio's standard deviation will not exceed 10%. Required: a. What is the investment proportion, y ? b. What is the expected rate of return on the complete portfolio? Complete this question by entering your answers in the tabs below. What is the investment proportion, y ? Note: Round your answer to 2 decimal places Step by Step Solution
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