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PROBLEM 2: Your client, Sandra, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to

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PROBLEM 2: Your client, Sandra, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. E(R) Standard Deviation of P T-Bill rate 12.00% 7.20% 3.60% Proportion of Complete Portfolio in P Proportion of Complete Portfolio in T-Bills 80% 20% Composition of P: Stock A Stock B Stock C Total 40.00% 25.00% 35.00% 100.00% a) What is the expected return on Sandra's complete portfolio? b) What is the standard deviation of Sandra's complete portfolio? c) What is the equation of Sandra's capital allocation line? d) What are the proportions of stocks A, B, and C, respectively, in Sandra's complete portfolio

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