Question: Use these inputs for Problems 13 through 15: You manage a risky portfolio with an expected rate of return of 18% and a standard deviation

Use these inputs for Problems 13 through 15: You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 28%. The T-bill rate is 8%.

13)

Your client chooses to invest 70% of a portfolio in your fund and 30% in an essentially risk-free money market fund. What are the expected value and standard deviation of the rate of return on his portfolio?

.7*.18 + .3*.08

14)

Suppose that your risky portfolio includes the following investments in the given proportions:

Stock A	25%
Stock B	32%
Stock C	43%

What are the investment proportions of your clients overall portfolio, including the position in T-bills?

Stock A	0.25 * 0.7	0.175
Stock B	0.32 * 0.7	.224
Stock C	0.43 * 0.7	0.301
	Total	0.7

1-.7= .30

T-Bills = 0.30

15)

What is the reward-to-volatility (Sharpe) ratio (S) of your risky portfolio? Your clients?

HELP WITH 15 PLEASE

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