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Problem 5-14 Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 35%. The T-bill

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Problem 5-14 Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 35%. The T-bill rate is 4.5% Stock A Stock B Stock C 37 A client prefers to invest in your portfolio a proportion) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 25%. a. What is the investment proportion, y? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Investment proportion y % b. What is the expected rate of return on the overall portfolio? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Rate of return %

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