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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

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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