Problem:
Jacob has decided to invest in Treasury bills and a Markowitz portfolio that is determined by the tangent from the risk free asset to the efficient frontier. The tangest portfolio on the efficient set has expected return of 19% and a standard deviation of 15%. Treasury bills are returning 5% with a standard deviation of 0%. Jacob decides to invest 40% of his funds in T-bills and the rest in the selected portfolio.
Required
Question: Calculate the ER and standard deviation of his portfolio.