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Problem 5-12 Assume that you manage a risky portfolio with an expected rate of return of 16% and a standard deviation of 40%. The T-bill

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Problem 5-12 Assume that you manage a risky portfolio with an expected rate of return of 16% and a standard deviation of 40%. The T-bill rate is 4%. Your client chooses to invest 80% of a portfolio in your fund and 20% 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 Standard deviation % per year % per year b. Suppose your risky portfolio includes the following Investments in the given proportions: Stock A Stock B Stock c What are the investment proportions of your client's overall portfolio, including the position in T-bills? (Round your ansijvers to 1 decimal places.)

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