Question
you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 36%. The T- Bill rate is 6%
you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 36%. The T- Bill rate is 6%
your risky portfolio includes the following investments in the given proportions:
stock a 27%
stock b 35%
stock c 38%
suppose that your client decided 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 15%
A. what is the proportion of y?
B. What are your client's investment proportions in your three stocks and T- bill fund?
C. What is the standard deviation of the rate of return on your client's portfolio?
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