Question: The same client as in the previous problem is comfortable with an annual standard deviation of 10%. You will invest his wealth accordingly, putting some

The same client as in the previous problem is comfortable with an annual standard deviation of 10%. You will invest his wealth accordingly, putting some percent into risk-free t-bills (expected return of 4%) and the rest in your hybrid equity-bond fund, which has an annual standard deviation of 17% and is composed of 40% bonds (expected return of 7%) and 60% equity (expected return of 18%). What is the expected return on your clients complete portfolio? The found capital allocation (y) is 58.82%

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