Hello Tutor!

Just these three, please!

1. Sam has decided to do a margin trade by borrowing $2,200 and putting up $4,400 himself. The portfolio he is investing in earns expected returns of E(r)=13% and exhibits standard deviation of 37%. What will be the expected return on his investment, if the risk free rate to invest in is 2.9% and the rate at which money can be borrowed is 5.5%?

Provide your answer in percent, rounded to two decimals, omitting the % sign

2. As a financial adviser, you are recommending a well-diversified fund with an expected rate of return of 21% and a standard deviation of 38% to your clients. A client would like to split her investment between your fund and T-bills so that her standard deviation is no more than 22%. What will be her expected return? T-bill's yield 3%.

Provide your answer in percent rounded to two digits, omitting the % sign.

3. Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 25%. The T-bill rate is 3% . Suppose your risky portfolio includes the following investments in the given proportions.

Dell	50%
Apple	30%
HP	20%

What are the investment proportions of your clients overall portfolio, including the position in T-bills, if your client's risk aversion coefficient is 3?

- A. B. C. D.	Dell
- A. B. C. D.	Apple
- A. B. C. D.	HP
- A. B. C. D.	T-Bill

A.	32%
B.	19.2%
C.	12.8%
D.	36%