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Consider the following information about a risky portfolio that you manage and a risk-free asset...

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Consider the following information about a risky portfolio that you manage and a risk-free asset (rp) - 16,0p - 2018 - 41. a. Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to 5%. What proportion should she invest in the risky portfolio, P. and what proportion in the risk- free asset? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) % Risky portfolio Risk-free asset % b. What will be the standard deviation of the rate of return on her portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation % c. Another client wants the highest return possible subject to the constraint that you limit his standard deviation to be no more than 12%. Which client is more risk averse? First client Second client

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