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 $9\%$ and a standard deviation of returns of $26\%.$ T$-$

bills have a return of $6\%.$

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?