Assume that you manage a risky portfolio with an expected rate of return of 20% and...

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Finance

Assume that you manage a risky portfolio with an expected rateof return of 20% and a standard deviation of 42%. The T-bill rateis 4%.
Your risky portfolio includes the following investments in thegiven proportions:
  Stock A 26 %
  Stock B 35 %
  Stock C 39 %
Your client decides to invest in your risky portfolio aproportion (y) of his total investment budget with theremainder in a T-bill money market fund so that his overallportfolio will have an expected rate of return of 16%.
a. What is the proportion y? (Round your answerto 2 decimal places.)
  Proportion y

b.
What are your client's investment proportions in your threestocks and the T-bill fund? (Round your intermediatecalculations and final answers to 2 decimal places.)
   Security Investment
Proportions
   T-Bills %
   Stock A %
   Stock B %
   Stock C %
c.
What is the standard deviation of the rate of return on yourclient's portfolio? (Round your intermediate calculationsand final answer to 2 decimal places.)
  Standard deviation % per year

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Assume that you manage a risky portfolio with an expected rateof return of 20% and a standard deviation of 42%. The T-bill rateis 4%.Your risky portfolio includes the following investments in thegiven proportions: Stock A26% Stock B35% Stock C39%Your client decides to invest in your risky portfolio aproportion (y) of his total investment budget with theremainder in a T-bill money market fund so that his overallportfolio will have an expected rate of return of 16%.a.What is the proportion y? (Round your answerto 2 decimal places.) Proportion y b.What are your client's investment proportions in your threestocks and the T-bill fund? (Round your intermediatecalculations and final answers to 2 decimal places.) SecurityInvestmentProportions T-Bills% Stock A% Stock B% Stock C% c.What is the standard deviation of the rate of return on yourclient's portfolio? (Round your intermediate calculationsand final answer to 2 decimal places.) Standard deviation% per year

Security	Investment Proportions
T-Bills	%
Stock A	%
Stock B	%
Stock C	%