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Please show work 26. 6.00 points value: Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard
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26. 6.00 points value: Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill rate is 6% Your risky portfolio includes the following investments in the given proportions Stock A Stock B Stock C 23% 32% 45% Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 9% a. What is the proportion y? (Round your answer to 2 decimal places.) Proportion y b. What are your client's investment proportions in your three stocks and the T-bill fund? (Round your intermediate calculations and final answers to 2 decimal places.) Investment Proportions Security T-Bills Stock A Stock B Stock CStep by Step Solution
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