Question: Please show work Suppose that the borrowing rate that your client faces is 10%. Assume that the S&P 500 index has an expected return of

Please show work Suppose that the borrowing rate that your client facesPlease show work

Suppose that the borrowing rate that your client faces is 10%. Assume that the S&P 500 index has an expected return of 16% and standard deviation of 22%. Also assume that the risk-free rate is re = 3%. Your fund manages a risky portfolio, with the following details: Elrp) = 12%, Op = 18%. 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.) y 1

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