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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
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 35% 32% 33% 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.) 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 96 T-Bills Stock A % Stock B Stock C 96 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 %
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