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You are a Morgan Stanley portfolio manager of a risky portfolio with an expected rate of return of 1 7 % and a standard deviation

You are a Morgan Stanley portfolio manager of a risky portfolio with an expected rate of return of 17% and a standard deviation of 28%. The T-bill rate is 4%. Suppose your client decides to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have a standard deviation of 10%. a. What is the proportion y?

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