Problem 4 (15 marks). Consider the following information about a risky portfolio that you manage, and a risk-free asset: E(Tp) = 11%, op = 15%, ry = 5%. a) Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to 8%. What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset? (5 marks] b) What will be the standard deviation of the rate of return on her portfolio? [5 marks] c) Another client wants the highest return possible subject to the constraint that you limit his standard deviation to be no more than 12%. Which client is more risk averse? [5 marks]