Question
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
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 Blinks portfolio. Tom has provided you with the following table:
1. What is the proportion y invested by the client? *
A) 51.5%
B) 50%
C) 75%
D) None of the above
2. What is the expected return of Mr. Hani? *
A) 8%
B) (14.2)%
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%
C) It would decrease by 10%
D) It would increase by 7%
E) None of the above
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