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*please explain how to do problem* Assume that you manage a risky portfolio with an expected rate of return of 13% and a standard deviation
*please explain how to do problem*
Assume that you manage a risky portfolio with an expected rate of return of 13% and a standard deviation of 37%. The T-bill rate is 4%. Your client chooses to invest 75% of a portfolio in your fund and 25% in a T-bill money market fund. |
a. | What is the expected return and standard deviation of your client's portfolio? (Round your answers to 2 decimal places.) |
Expected return | % per year | |
Standard deviation | % per year | |
b. | Suppose your risky portfolio includes the following investments in the given proportions: |
Stock A | 21% |
Stock B | 30% |
Stock C | 49% |
What are the investment proportions of your client |
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