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Forester Investment Group manages a risky portfolio with an expected rate of return of 19.2% and a standard deviation of 28.7%. The T-bill rate is
Forester Investment Group manages a risky portfolio with an expected rate of return of 19.2% and a standard deviation of 28.7%. The T-bill rate is 3.6%. You, as a client, decide to invest in Forester's portfolio a proportion y of the investment budget so that the complete portfolio will have an expected rate of return of 17.5%. What is the standard deviation of your complete portfolio return? a. 25.57 % b. 20.82 % c. 28.70 % d. 26.45 % e. 23.07 %
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