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You manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 33%. The T-bill rate is 7%. Your

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You manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 33%. The T-bill rate is 7%. Your risky portfolio includes the following investments in the given proportions: Stock A Stock B Stock C 35 32% 334 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 16%. a. What is the proportion y? (Round your answer to the nearest whole number.) Proportion y % b. What are your client's investment proportions in your three stocks and the T-bill fund? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Investment Proportions T-Bills % Stock A % Stock B % 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 2 decimal places.) Standard deviation 9

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