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Business, 23.02.2021 01:00 aprilpendergrass

Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 36%. The T-bill rate is 4.5%. Your risky portfolio includes the following investments in the given proportions: Stock A 20 % Stock B 38 Stock C 42 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 16%. a. What is the proportion y

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