Question: Please help on question 9 in chapter 7 book investment analysis 10th edition: 4% T-Bill Rate Expected Return Standard Deviation Stock fund ( S )

Please help on question 9 in chapter 7 book investment analysis 10th edition: 4% T-Bill Rate

Expected Return Standard Deviation
Stock fund (S) 23 % 29 %
Bond fund (B) 14 17

You require that your portfolio yield an expected return of 12%, and that it be efficient, on the best feasible CAL.

a.

What is the standard deviation of your portfolio?

b.

What is the proportion invested in the T-bill fund and each of the two risky funds?

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