Show me the steps to solve Problem $6-21$

Consider the following information about a risky portfolio that you manage and a risk$-$free asset: $E(r_P)=16\%,P=20\%,r_f=4\%.$

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 $5\%.$ What proportion should she invest in the risky portfolio, $P,$ and what proportion in the risk$-$free asset? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

b$.$ What will be the standard deviation of the rate of return on her portfolio? $($Do not round Problem $6-21$

Consider the following information about a risky portfolio that you manage and a risk$-$free

asset: $E(r_P)=16\%,P=20\%,r_f=4\%.$

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 $5\%.$ What

proportion should she invest in the risky portfolio, $P,$ and what proportion in the risk$-$free

asset? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

b$.$ What will be the standard deviation of the rate of return on her portfolio? $($Do not round

intermediate calculations. Round your answer to $2$ decimal places.$)$intermediate calculations. Round your answer to $2$ decimal places.$)$