You manage a risky portfolio with an expected rate of return of $10\%$ and a standard deviation of $29\%.$ The T$-$bill rate is $3\%.$

Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolio's standard deviation will not exceed $10\%.$

Required:

a$.$ What is the investment proportion, $y?$

b$.$ What is the expected rate of return on the complete portfolio?

Complete this question by entering your answers in the tabs below.

What is the investment proportion, $y?$

Note: Round your answer to $2$ decimal places.

Investment proportion $y$

$\%$