You survey a client and you conclude that she can tolerate a standard deviation T of at most 14%. You can allocate your clients wealth into a corporate bond fund, a common stock fund, and a U.S. T-Bills (risk -free), with the following means and standard deviations:

	Expected Return	Standard Deviation
Bond Fund(B)	14%	18%
Common Stock(S)	19%	33%
U.S. T-Bill (rf)	10%

a) Find the weights your client should allocate into the bond fund (wB), the common stock fund (wS), and into the risk-free asset (wf). (Remember that wB+wS+wf = 1).

b) Finally, find the return of the portfolio that you found in e). Verify that the standard deviation of the risky portfolio is exactly 15%.