Business, 20.09.2020 15:01 piper64bsj

You manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 34%. The T-bill rate is 8%. Your risky portfolio includes the following investments in the given proportions: Stock A 45 %
Stock B 32 %
Stock C 23 %

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 17%.

Required:
a. What is the proportion y?
b. What are your client's investment proportions in your three stocks and the T-bill fund?

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You manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 34%....

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