Question 12

5 Points

1	B	C	D
2	Your client want to invest a proportion of her total investment budget in your risky fund.
3	Your fund has the following attributes:
4	Expected Portfolio Return E(rp)	11.00%
5	Risk free Rate (rf)	5.00%
6	Your client has a Required Portfolio Return of	9.0%
7
8
9	What proportion should she invest in the risky portfolio (y).
10	y = (Required Portfolio Return - Risk Free Rate) / (Expected Portfolio Return - Risk Free Rate)

66.70%

86.43%

76.76%

56.70%