Suppose your risky portfolio includes the following investments in the given proportions: A: 27%, B: 33% C: 40%. Your client decides to invest 30% in the risk-free investment. What are the investment proportions of your clients overall portfolio?

(a) The return of your portfolio is 17% with a standard deviation of 27%. The risk-free return is 7%. What is the return and standard deviation of your clients portfolio?

(b) What is the slope of the CAL for the clients portfolio?

(c) Elin, a new fund manager, offers the following CAL to her clients

Rp = 7% + 0.40p

Will the client prefer to invest with Elin?

(d) Ruben invests at Elins fund and seeks a portfolio risk (measured by standard deviation) of 80%. What is the expected return for Rubens investment?