You manage a risky portfolio with an expected rate of retum of 17% and a standard deviation of 35%. The T-bill rate is 5%. Your cliem chooses to invest 70% of a portfolio in your fund and 30% in a T-bll money market fund. Suppose that your risky portfollo includes the following investments in the given proportions: Stock A 25 X 35 X 40 X Stock B Stock C What are the investment proportions of your client's overall portfolio, including the position in T-bills? (Round your answers to 1 decimal place.) Investment Proportions T-Bils Stock A Stock B Stock C

You manage a risky portfolio with an expected rate of retum of 17% and a standard deviation of 35%. The T-bill rate is 5%. Your cliem chooses to invest 70% of a portfolio in your fund and 30% in a T-bll money market fund. Suppose that your risky portfollo includes the following investments in the given proportions: Stock A 25 X 35 X 40 X Stock B Stock C What are the investment proportions of your client's overall portfolio, including the position in T-bills? (Round your answers to 1 decimal place.) Investment Proportions T-Bils Stock A Stock B Stock C

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 33%. The T-bill rate is 2%. Your client chooses to invest 75% of a portfolio in your fund and 25% in an essentially risk-free money market fund. What are the expected return and standard deviation of the rate of return on his portfolio? Note: Round your answers to 2 decimal places. Expected return Standard deviation % %
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