Solve Question 5 use the information provided before.

Question 1 Yeu have just decided upon you cagral allocation tor the nest yrar when vou texlise that you hare underestimated both the eepected teturn and standard deviation of yout risky portfolro ty 45 Wil voy increase, decrease or leave unthanged your altocation to riak free T notes? Use these data for Question 2.6. You manage a ribly portinlo with expected rate of rathurn of 1 ans and itandard devation of 28%, The T. bill rate is 8% Quention. 2 Your client chooses to imvest 70k of a portiolib in pour fund and 3 n in a T-bil money marke foed, what is the expected value and standard devation of the rate of return on hio gorthlos? Suppose that your rishy poitfolio indudes the following invettments in the Even prepertion: Stock Bi32\% o. 32=77.4%=7 of af. The favt Folio StockC:43\% o (43) =$ .1 of What are the imvestrnent proportions of your ellent's overalt portfolio; indiudirc the ponition in thils? T2i15=301 Question 4 What is the reward to-variability ratio (S) of your rkiky portfolio? your clitnt's? Question.5: Draw the CAL of your portiotio on an expected feturn standard deviation cogrem. What is the sope of CAL? Show the position of your client on your fund's CAL