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Assume that you manage a risky portfolio with an expected rate of re

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Assume that you manage a risky portfolio with an expected
rate of return of 15% and a standard deviation of 40%. The
T-bill rate is 5%.
Your risky portfolio includes the following investments in
the given proportions:
Your client decides to invest in your risky portfolio a
proportion (y) of his total investment budget with the
remainder in a T-bill money market fund so that his overall
portfolio will have an expected rate of return of 13%.
What are your client\'s investment proportions in your
three stocks and the T-bill fund? (Round your intermediate
calculations and final answers to 2 decimal places.)
What is the standard deviation of the rate of return on your
client\'s portfolio? (Round your intermediate calculations
and final answer to 2 decimal places.)
Assume that you manage a risky portfolio with an expected
rate of return of 15% and a standard deviation of 40%.
The T-bill rate is 5%.
Solution
What are your client\'s investment proportions in your
three stocks and the T-bill fund? (Round your intermediate
calculations and final answers to 2 decimal places.)
What is the standard deviation of the rate of return on your
client\'s portfolio?

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Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 40%. The T-bill rate is 5%. Your risky portfolio includes the following investments in the given proportions: Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 13%. What are your client\'s investment proportions in your three stocks and the T-bill fund? (Round your intermediate calculations and final answers to 2 decima ...
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