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ou manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 38%. The T-bill rate is 6%. Your

ou manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 38%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions:

Stock A 31 %
Stock B 35 %
Stock C 34 %

Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 15%.

a. What is the proportion y? (Round your answer to the nearest whole number.)

b. What are your clients investment proportions in your three stocks and the T-bill fund?(Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the standard deviation of the rate of return on your clients portfolio?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

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