Question: A passive ETF that tracks the S&P/TSX yields an expected return of 14% with standard (SD) of 24%. You manage a portfolio with an expected

A passive ETF that tracks the S&P/TSX yields an expected return of 14% with standard (SD) of 24%. You manage a portfolio with an expected rate of return of 18% and a standard deviation of 28%. Assume the risk free rate is 8% (we wish!). Suppose that the client wants to put 70% of his money in the ETF and 30% in the risk free. *42. If the client uses the passive ETF strategy his expected rate of return is: a) the same as your portfolio. b) greater than your portfolio. :) less than your portfolio

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