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Your portfolio consist of three stocks A, B, and C with the weight of 25%, 32% and 43% respectively with expected return of 18% and
Your portfolio consist of three stocks A, B, and C with the weight of 25%, 32% and 43% respectively with expected return of 18% and S.D. of 28%. The T-bill rate is 8%. Your clients choose to invest 70% of his portfolio in your portfolio fund and 30% in T-bill. What is the expected return and SD of your clients portfolio? What are the investment proportions of your clients overall portfolio (A, B, C stocks and T-bill)? What is the reward to variability ratio (slope) of your portfolio and your clients portfolio?
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