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Business, 24.04.2020 15:18 mona92

You manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 35%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions:
Stock A 33 %
Stock B 36 %
Stock C 31 %
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 18%.
Required:
(a) What is the proportion y? (Round your answer to the nearest whole number. Omit the "%" sign in your response.)
(b) What are your client’s investment proportions in your three stocks and the T-bill fund? (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.)

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