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Tom Fort, a senior portfolio manager at AFTA-Funds, manages a portfolio which is consisting of risky and risk-free assets. Mr. Hani, a client, wants to

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Tom Fort, a senior portfolio manager at AFTA-Funds, manages a portfolio which is consisting of risky and risk-free assets. Mr. Hani, a client, wants to invest in Blink's portfolio. Tom has provided you with the following table: Risk-free rate 8% Standard deviation for the client 17% 21% Expected return on the overall portfolio Risk on the overall portfolio 33% 1. What is the proportion "y" invested by the client? O A) 51.5% O B) 50% C) 75% D) None of the above 2. What is the expected return of Mr. Hani? * OA) 8% OB) (14.2% O C) 14.7% D) 21% E) None of the above 3. Assume that Mr. Hani requires a minimum return of 24%, by how much would the proportion "y" change? A) It would increase by 15% B) It would increase by 10% OC) it would decrease by 10% D) It would increase by 7%

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