Question No 08 Use this input to answer following questions: You manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 20%. The T-bill rate is 8%. a) Your client chooses to invest 60% of a portfolio in your fund and remaining money in an essentially risk-free money market fund. What is the expected value and standard deviation of the rate of return on his portfolio? (2 Marks) b) What is the reward-to-volatility (Sharpe) ratio (S) of your risky portfolio? (1 Mark) 6 c) Your client's degree of risk aversion is A - 4.3. What proportion, y, of the total investment should be invested in your fund? (2 Mark)