You manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 31%. The T-bill rate is 5%.   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? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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A: Therefore, the proportion of y is 36.44%.

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A: A mixture of different kinds of funds and securities for the investment is term as the portfolio.

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Q: standard

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A: Given: To determine expected return of a portfolio with 60% stock fund and 40% of market fund.

Q: Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Consider a risky portfolio, A, with an expected rate of return of 0.15 and a standard deviation of…

A: The risk reward ratio of Portfolio A = Risk / Return = 0.15/0.15 = 1

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A:

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A:

Q: Suppose you are the money manager of the following portfolio. The fund consists of four stocks with…

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Q: You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 28%.…

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Q: You are evaluating various investment opportunities currently available and you have calculated…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

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Q: You manage a risky portfolio with expected rate of return of 16% and a standard deviation of 28%.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

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A: Given:

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Q: A pension fund manager is considering three mutual funds. The first one is a stock fund, the second…

A: Portfolio is a bundle of various assets. To manage the risk, investors invest their money in…