Problem 4 Intro Suppose that you manage a portfolio with a standard deviation of 48% and an expected return of 15%. An investor wants to invest a proportion of his investment budget in your fund. The remaining proportion of his investment budget will be invested in Treasury bills. The T-bill rate is 9%. Part 1 Attempt 1/10 for 10 pts. If the investor wants to maximize their expected return on their complete portfolio subject to the constraint that the complete portfolio's standard deviation will not exceed 18%, what fraction should they invest in your fund? 3+ decimals Submit Part 2 Attempt 1/10 for 10 pts. Now suppose that the investor has a degree of risk aversion of A= 3. What fraction should they invest in your fund? 3+ decimals Submit

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