You manage a risky portfolio with an expected rate of return of 1 0 % and a
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Question:
You manage a risky portfolio with an expected rate of return of and a standard deviation of The Tbill rate is
Stock A
Stock B
Stock C
Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of
Required:
What is the proportion y
What are your clients investment proportions in your three stocks and the Tbill fund?
What is the standard deviation of the rate of return on your clients portfolio?
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