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Consider the following information about a risky portfolio that you manage and a risk-free asset: E(rp) = 13%, Op = 24%, rf = 4%. a.
Consider the following information about a risky portfolio that you manage and a risk-free asset: E(rp) = 13%, Op = 24%, rf = 4%. a. Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to 6%. What proportion should she invest in the risky portfolio, P, and what proportion in the risk- free asset? (Do not round intermediate calculations. Round your answer to 2 decimal place.) Risky portfolio Risk-free asset b. What will be the standard deviation of the rate of return on her portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation
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