You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 32%. The T-bill rate is 8%. Your risky portfolio includes the following investments in the given proportion

Suppose that your client decides 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 16%. a. What is the proportion y? (Round your answer to the nearest whole number.)

b. What are your clients investment proportions in your three stocks and the T-bill fund? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

c. What is the standard deviation of the rate of return on your clients portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock A A Stock B Stock C 27% 36% 37% Proportion y % Investment Proportions % T-Bills Stock A % Stock B % Stock C % Standard deviation %