You manage a risky portfolio with an expected rate of return of 18% and a standard…

You manage a risky portfolio with an expected rate of return of
18% and a standard deviation of 29%. The T-bill rate is 8%.
Your risky portfolio includes the following investments in the
given proportions:

Stock A
35
%

Stock B
35
%

Stock C
30
%

Suppose that your client decides to invest in your portfolio a
proportion y of the total investment budget so that the
overall portfolio will have an expected rate of return of 14%.
a. What is the proportion y?
(Round your answer to the nearest whole
number.)
b. What are your client’s investment
proportions in your three stocks and the T-bill fund? (Do
not round intermediate calculations. Round your answers to 2
decimal place.)
c. What is the standard deviation of the rate
of return on your client’s portfolio?