You have invested in a portfolio of 75% in risky assets (Portfolio R) and 25% in T-bills. The risky portfolio is described below:

E(r_R)=10%

_R =20%

1. If the T-bill rate is 4%, what is the expected return on your overall portfolio, including both portfolio R and the T-bills?
2. Compute the standard deviation of your overall portfolio.
3. Your total investment is $100,000, and the risky portfolio is invested in 3 stocks, A, B, and C. 45% is in A, 30% in B, and 25% in C. How much of your $100,000 is invested in each stock?
4. If R is the optimal risky portfolio, and your degree of risk aversion is A=2.5, is your weighting between the T-bills and portfolio R optimal for you?