Mr. Peter manages a portfolio of risky and risk-free assets. Client X wants to invest in his portfolio a proportion y of the total investment. Mr. Peter has provided you with the following information:

1. What is the proportion y invested by the client? *

a. 84.21%

b. 26.66%

c. 71.5%

d. 80.6%

e. None of the above

2. What is the expected return of the client? *

a. 7.20%

b. 9.22%

c. 9.63%

d. 9.79%

e. None of the above

3. Assume that the client requires a minimum return of 10%, by how much would the proportion y invested by client X change? *

a. It would increase by 8.29%

b. It would increase by 17.39%

c. It would increase by 62.23%

d. It would increase by 4.68%

e. None of the above

The expected return and risk on the overall portfolio (risky and risk-free) are respectively equal to 10.5% and 19%. The risk-free rate is 6% The standard deviation for the client is 16%