Question: I keep getting the second one wrong. Please show work Suppose that the borrowing rate that your client faces is 9%. Assume that the equity
I keep getting the second one wrong. Please show work
Suppose that the borrowing rate that your client faces is 9%. Assume that the equity market index has an expected return of 13% and standard deviation of 25%. Also assume that the risk-free rate is rf = 5%. Your fund manages a risky portfolio, with the following details: E(rp) = 11%, Op = 15%. 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 1 decimal place.) X Answer is not complete. y 1 %
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