Question: You manage an equity fund with an expected risk premium

You manage an equity fund with an expected risk premium of 10 percent and an expected standard deviation of 14 percent. The rate on Treasury bills is 6 percent. Your client chooses to invest $ 60,000 of her portfolio in your equity fund and $ 40,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio?


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  • CreatedJune 21, 2015
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