You manage a risky portfolio with an expected rate of return of 19% and a standard…

You manage a risky portfolio with an expected rate of return of
19% and a standard deviation of 34%. The T-bill rate is 8%.
Suppose that your client prefers to invest in your fund a
proportion y that maximizes the expected return on the
complete portfolio subject to the constraint that the complete
portfolio’s standard deviation will not exceed 19%.
a. What is the investment proportion,
y? (Round your answer to 2 decimal
places.)
b. What is the expected rate of return on the
complete portfolio?