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 return of 16%. what is the proportion y? what are your client's investment proportions in your 3 stocks and t-bills? what is the standard deviation of the rate of return on your client's portfolio? Assume that you manage a risky portfolio with an expected rate of return of 14.5% and a standard deviation of 25%. The t-bill rate is 3%. Your client who in lati
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