Consider the following Information about a risky portfolio that you manage and a risk$-$free asset:

$E(r_P)=11\%,{}_P=13\%,r_f=2\%.$

Required:

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 portfollo equal to $8\%.$ What proportion should she Invest in the risky

portfolio, $P,$ and what proportion in the rlsk$-$free asset?

b$.$ What will be the standard devlation of the rate of return on her portfolio?

c$.$ Another client wants the highest return possible subject to the constraint that you limit his standard deviation to be

no more than $17\%.$ Which client is more rlsk averse?

Complete this question by entering your answers in the tabs below.

Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of retu

on her overall or complete portfolio equal to $8\%.$ What proportion should she invest in the risky portfolio, $P,$ and what

proportion in the risk$-$free asset?

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.