You manage a risky portfolio with an expected rate of return of 11% and a standard deviation of 37%. The T-bill rate is 4%.

Stock A	29%
Stock B	35%
Stock C	36%

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 10%.

Required:

What is the proportion y?

What are your clients investment proportions in your three stocks and the T-bill fund?

What is the standard deviation of the rate of return on your clients portfolio?