Intro

An investor wants to invest money in Treasury bills and a risky fund managed

by Infinity Capital. The investor wants to achieve an expected return of $8\%$ on his

complete portfolio. Infinity Capital has an expected return of $12\%$ and a standard

deviation of returns of $34\%.$ T$-$bills have a return of $3\%.$

Part $1$

What proportion of his total investment should he invest in the risky fund in order to

achieve the expected return?

Part $2$

What is the standard deviation of the complete portfolio?