Problem:
Mary is investing her $100,000 and wants to form a portfolio with an expected return of $11,000 at the end of one year by putting her money in T-bills (earning the risk-free rate of 7%) and her broker's fund (expected return of 13% net of fee and a standard deviation of 20%).
Required:
Question 1: What would be the dollar amount of positions in the T-Bills and her broker's fund respectively?
Question 2: What is the standard deviation of her portfolio?
Note: Please provide full description.