What is the expected return and standard deviation

Reference no: EM132209130

Question - Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 39%. The T-bill rate is 6%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund.

a. What is the expected return and standard deviation of your client's portfolio? (

b. Suppose your risky portfolio includes the following investments in the given proportions:

Stock A 23%

Stock B 32%

Stock C 45%

What are the investment proportions of your client's overall portfolio, including the position in T-bills?

c. What is the reward-to-volatility ratio (S) of your risky portfolio and your client's overall portfolio?

Reference no: EM132209130

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