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  3. 1. you invest 40% in a risky portfolio, and 60% in

1. You invest 40% in a risky portfolio, and 60% in a treasury bill. The...

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Finance

1. You invest 40% in a risky portfolio, and 60% in a treasury bill. The risky portfolio has an expected return of 15% and a standard deviation of 25%. The treasury bill pays 5%. Suppose that your risky portfolio includes the following investments in the given proportions: Stock A 30% Stock B 40% Stock C 30%

(1) What are the investment proportions in the complete portfolio, including stock A, B, C, D and the Treasury bill?

(2) What is the expected return and standard deviation of your complete portfolio?

(3) What is the Sharpe ratio of your complete portfolio?

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