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
a. What is the proportion y?
b. What are your client's investment proportions in your three stocks and the T-bill fund?
c. What is the standard deviation of the rate of return on your client's portfolio?
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a E r C y E r P 1 y r f y 017 1 y 007 015 or 15 per year Solving for y we g... View full answer
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