Intro

Suppose that you manage a fund with a standard deviation of $36\%$ and an

expected return of $15\%.$ Your fund consists of the following investments:

The Treasury bill rate is $6\%.$ An investor wants to invest a proportion of his

investment budget in a T$-$bill money market fund and the remaining proportion in

your fund.

Part $1$

What proportion of the investor's money should be invested in your fund in order to

achieve an expected return of $16\%?$

Part $2$

What proportion of the investor's complete portfolio will be invested in stock B$?$