Question 28 10/14 p Consider the following information about a stock fund and a risk-free asset: E(TP) = 12.5%, OP = 16%, rf = 3.5%. a. You want to invest a proportion of your total investment budget in the stock fund to provide an expected rate of return on your overall or complete portfolio equal to 9%. What proportion should you invest in the stock fund, P, and what proportion in the risk-free asset? b. What will be the standard deviation of the rate of return on your total portfolio? C. You are also considering the highest return possible subject to the constraint that you limit his standard deviation to be no more than 12%. Which portfolio (one noted in bor c) is more appropriate if you were risk averse? Your