1.

2.

Suppose that the borrowing rate that your client faces is 12%. Assume that the S&P 500 index has an expected return of 13% and standard deviation of 35%, that re = 4%. What is the range of risk aversion for which a client will neither borrow nor lend, that is, for which y=1? (Do not round intermediate calculations. Round your answers to 2 decimal places.) y = 1 for SAS Suppose that the borrowing rate that your client faces is 10%. Assume that the S&P 500 index has an expected return of 12% and standard deviation of 24%. Also assume that the risk-free rate is rf = 5%. Your fund manages a risky portfolio, with the following details: p) = 14%, do = 17%. What is the largest percentage fee that a client who currently is lending ly 1)? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Ty 1