1. You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 35%. The T-bill rate is 5%.
   1. What is the Sharpe ratio of the risky portfolio?
   2. Your client chooses to invest 70% of a portfolio in your fund and 30% in an essentially risk-free money market fund. What is the expected return and standard deviation of the rate of return on their portfolio?
   3. Another client wishes to invest such that the resulting combination of risky portfolio and risk-free investments has a standard deviation of 21%. How much money do you need to allocate to the risky portfolio, and what is the expected return?