Question: answer this please Problem 5-13 (Algo) Assume that you manage a risky portfolio with an expected rate of return of 14% and a standard deviation
answer this please
Problem 5-13 (Algo) Assume that you manage a risky portfolio with an expected rate of return of 14% and a standard deviation of 38%. The T-bill rate is 4%. 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 10%. Required: a. What is the proportion y? (Round your answer to 1 decimal place.)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
