Question
You manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 33%. The T-bill rate is 2%. Stock
You manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 33%. The T-bill rate is 2%.
| Stock A | 29% |
|---|---|
| Stock B | 36% |
| Stock C | 35% |
Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 9%.
Required:
A) What is the proportion y?
B) What are your clients investment proportions in your three stocks and the T-bill fund?
C) What is the standard deviation of the rate of return on your clients portfolio
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The Essential Credit Repair Handbook
Authors: Deborah McNaughton
1st Edition
160163160X, 978-1601631602
