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.if you succeed in convincing the client to use your portfolio , but with the same allocation of assets as the passive (i.e. 70% risky and 30% risk free) then he will have a return of: A) 19.6% B) 15% C) 11.5% D) 17.5% * 44. Your client still insists that your portfolio is too risky compared to the ETF. You succeed in convincing him that he could get the same returns from your fund BUT with less risk. Because he is a risk adverse investor this would make him better off. You show him that with your portfolio he would get the same returns as with the passive portfolio if he invested A) 28 % in your portfolio and the rest in the risk free B) 25 % in your portfolio and the rest in the risk free C) 35 % in your portfolio and the rest in the risk free D) 42 % in your portfolio and the rest in the risk free