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Business, 19.03.2020 09:01 kels7618

Assume that you manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 41%. The T-bill rate is 4%. Your risky portfolio includes the following investments in the given proportions: Stock A 25 % Stock B 34 Stock C 41 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 16%. a. What is the proportion y? (Round your answer to 1 decimal places.)

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