Question: 9 Suppose that the borrowing rate that your client faces is 12%. Assume that the equity market index has an expected return of 14% and

9 Suppose that the borrowing rate that your client faces is

9 Suppose that the borrowing rate that your client faces is 12%. Assume that the equity market index has an expected return of 14% and standard deviation of 23%. Also assume that the risk-free rate is rf = 6%. Your fund manages a risky portfolio, with the following details: E(rp) 13%, p 24%. 11.12 points What is the largest percentage fee that a client who currently is lending (y 1)? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) eBook Print % References y 1 % X This is a numeric cell, so please enter numbers only

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