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You manage a risky portfolio with an expected rate of return of 1 0 % and a standard deviation of 3 1 % . The
You manage a risky portfolio with an expected rate of return of and a standard deviation of The Tbill rate is
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
Required:
a What is the proportion
b What are your client's investment proportions in your three stocks and the Tbill fund?
c What is the standard deviation of the rate of return on your client's portfolio?
Complete this question by entering your answers in the tabs below.
Required C
What is the proportion
Note: Round your answer to the nearest whole number.
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