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1. (12) You invest 50% in a risky portfolio, and 50% in a one-year treasury...

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1. (12) You invest 50% in a risky portfolio, and 50% in a one-year treasury bill. The risky portfolio has an expected return of 15% and a standard deviation of 25%. The treasury bill pays 7% interest annually. Suppose that your risky portfolio includes the following investments in the given proportions: Stock A 30% 30% Stock B Stock C 30% Stock D 10% A. (4') What is the expected return and standard deviation of your complete portfolio? B. (4') What is the Sharpe ratio of the risky portfolio? What is the Sharpe ratio of the complete portfolio? C. (4') Instead of investing 50% in the risky portfolio, you now decide to invest in the risky portfolio a proportion (y) of your total investment budget so that your complete portfolio will have an expected return of 12%. What is the proportion of y

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