Suppose the market portfolio has an expected return of 12% and a standard deviation of 15%, and a mutual fund named Stellar Fundhas an expecte eturn of 18% and a standard deviation of 34%. The risk-free rate is 2%. a. Suppose a client of yours has invested 60% of his investment budget in Stellar Fund, and the remaining 40% in the risk-free asset, what is the expected rate of return and standard deviation faced by your client? b. You would like to demonstrate that the client should instead use the market portfolio along with the risk-free asset. To achieve the same level of expected return as before (vhen the client had 60% in Stellar and 40% in the risk-free), what percentage of the client's investment budget should be invested in the market portfolio, and what percentage should be invested in the risk-free asset? c. If the client follows your recommendation and uses the market portfolio and risk-free asset to maintain the same expected return, what will be the standard deviation your client faces? Please comment on how this, along with the standard deviation calculated in part a, demonstrates why using the market portfolio is superior to using Stellar Fund. Note: Please clearly organize your answer into three sections that you label 10A, 10B, and 10C, respectively and separate each section with a blank line. DO NOT show supporting work in the text box below only provide your final answers (you will show supporting work in the Answer Sheet you before you began the quiz). Make sure your hand writing on the Answer Sheet is clearly legible, including any potential financial calculator input using the value of money keys. Please remember that if your supporting answer sheet does not support the answer you provide in the text box below, you will not receive credit (therefore, on the supporting work sheet do NOT "correct" any mistake you may later discover). For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TTI Arial . T.:-.-..eas 3(12pt) 9b. Market Portfolio: x 0.96 Risk-free Asset: Words:18 Path: p