Standard deviation of the rate of return on new portfolio

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Reference no: EM13849646

You are the portfolio manager for a mutual fund. Your fund has an expected return of 15% with a standard deviation of 24% and the T-bill rate is 3%.

Your client decides that she wants to change the proportion (weight), w, of her portfolio invested in your fund so that she can achieve a return of 10%.

a. Calculate the weight w.

b. What is the standard deviation of the rate of return on the new portfolio?

Reference no: EM13849646

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Standard deviation of the rate of return on new portfolio : You are the portfolio manager for a mutual fund. Your fund has an expected return of 15% with a standard deviation of 24% and the T-bill rate is 3%. Calculate the weight w. What is the standard deviation of the rate of return on the new portfolio?

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