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%. Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolios standard deviation will not exceed 19%. a. What is the investment proportion, y? (Round your answer to 2 decimal places.)

b. What is the expected rate of return on the complete portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer is complete but not entirely correct. Investment proportion y 0.58 X % Answer is complete and correct. Rate of return 13.91 %