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Hi, please help me figure out parts b and c of this problem!! thank you. Assume that you manage a risky portfolio with an expected
Hi, please help me figure out parts b and c of this problem!! thank you.
Assume that you manage a risky portfolio with an expected rate of return of 17 and a standard deviaton of 27%. The T-bil rate is 7% Your nisky portfoho inchudes the following investments in the given proportions: Your client decides to invest in your nsky poitfoto a proportion (h) of hts total tivestment budget with the remaindet in a T-bil money market fund so that his overail portolo wil have an expected rate of return of 15% Required: a. What is the proportion y (Round your answer to 1 decimol ploce.) b. What are your clients investment propotions in your three stocks and in T.bits? (Round your answers to 1 decimol ploce.) c. What is the standiard devation of the rate of retum on your clients portfoto? (Round your answer to 1 decimal ploce.) Step by Step Solution
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