Ch $6$ Problem Sets: $13-15$

Use these inputs for Problems $13$ through $22$: You manage a risky portfolio with an expected rate of return of $18\%$ and a standard deviation of $28\%.$ The T$-$bill rate is $8\%.$

$13.$ Your client chooses to invest $70\%$ of a portfolio in your fund and $30\%$ in an essentially risk$-$free money market fund. What are the expected value and standard deviation of the rate of return on his portfolio?

$14.$ Suppose that your risky portfolio includes the following investments in the given proportions:

$\backslash$table$[[$Stock A$,25\%$