Your Client, Bo Regard, Holds a Complete Portfolio That Consists

Multiple Choice

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. $\begin{array}{lr}E\left(R_{p}\right) && 12.00 \% \\\text { Standard Deviation of } P && 7.20 \% \\\text { T-Bill rate } & &3.60 \%\\\\\text { Proportion of Complete Portfolio in P } & &80 \% \\\text { Proportion of Complete Portfolio in T-Bills } && 20 \% \\\\\text { Composition of P: } \\\text { Stock A } & 40.00 \% \\\text { Stock B } & 25.00 \% \\\text { Stock C } &\underline { 35.00 \% } \\\text { Total } & 100.00 \% \\\hline\end{array}$ What are the proportions of stocks A, B, and C, respectively, in Bo's complete portfolio?

A) 40%, 25%, 35%
B) 8%, 5%, 7%
C) 32%, 20%, 28%
D) 16%, 10%, 14%
E) 20%, 12.5%, 17.5%