Finance Assignment | Professional Writing
Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. Suppose that you have a client that prefers to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%.
(1) What is the investment proportion, y? (2.) What is the standard deviation of the rate of return on your client’s portfolio?
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