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Problem 5-13 Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 39%. The T-bill

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Problem 5-13 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 () 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 C c. What is the standard deviation of the rate of return on your client's portfolio? (Round your intermediate calculations and final answer to 2 decimal places.) Standard deviation % per year

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