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(Solved): You manage an equity fund with an expected riskpremium of 10% and an expected standard deviation of1 ...



You manage an equity fund with an expected riskpremium of 10% and an expected standard deviation of14%.The rate on Treasury bills is 6%. Your client chooseto invest $60,000 of her portfolio in your equity fund and$40,000 in a T-Bill money market fund.. 1)what is the expected return and standard deviation ofreturn on your client's portfolio?2) what is the reward-to-variability for the pquity fund?



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