Question: Suppose the same client in the previous problem decides to invest in your risky portfolio a proportion (y) of his total investment budget so that
Suppose the same client in the previous problem decides to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%. What is the proportion y? What are your client's investment proportions in your three stocks and the T-bill fund? What is the standard deviation of the rate of return on your client's portfolio? Suppose the same client in the previous problem decides to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%. What is the proportion y? What are your client's investment proportions in your three stocks and the T-bill fund? What is the standard deviation of the rate of return on your client's portfolio
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