Question: Problem 6-17 You manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 35%. The T-bill rate is
Problem 6-17 You manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 35%. The T-bill rate is 6%. Your risky portfolio Includes the following investments in the given proportions: 330 Stock A Stock B Stock C 366 316 Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 18%. a. What is the proportion y? (Round your answer to the nearest whole number) Proportion y b. What are your client's Investment proportions in your three stocks and the T-bill fund? (Do not round Intermediate calculations. Round your answers to 2 decimal place.) Investment Proportions T-Bills b. What are your client's Investment proportions in your three stocks and the T-bill fund? (Do not round Intermediate calculations. Round your answers to 2 decimal place.) Investment Proportions T-Bills Stock A Stock B Stock C c. What is the standard deviation of the rate of return on your client's portfolio? (Do not round Intermediate calculations. Round your answer to 2 decimal place.) Standard deviation
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