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You manage a risky portfolio with an expected rate of return of 1 8 % and a standard deviation of 3 2 % . The
You manage a risky portfolio with an expected rate of return of and a standard deviation of
The Tbill rate is
Your risky portfolio includes the following investments in the given proportions:
Stock A
Stock B
Stock C
Suppose that your client decides to invest in your portfolio a proportion of the total investment
budget so that the overall portfolio will have an expected rate of return of
a What is the proportion Round your answer to the nearest whole number.
b What are your client's investment proportions in your three stocks and the Tbill fund? Do not
round intermediate calculations. Round your answers to decimal places.
c What is the standard deviation of the rate of return on your client's portfolio? Do not round
intermediate calculations. Round your answer to decimal places.
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