You manage a risky portfollo with an expected rate of return of $11\%$ and a standard deviation of $37\%.$ The T$-$bill rate is

$4\%$

Suppose that your client prefers to Invest In your fund a proportion y that maximlzes the expected return on the

complete portfollo subject to the constraint that the complete portfollo's standard devlation will not exceed $11\%.$

Required:

a$.$ What is the Investment proportion, $y?$

b$.$ What is the expected rate of return on the complete portfolio?