Problem $5-19($Algo$)$

Required:

You manage an equity fund with an expected risk premium of $12\%$ and a standard deviation of $34\%.$ The rate on Treasury bills is $6\mathrm{.}4\%.$ Your client chooses to invest $$80,000$ of her portfolio in your equity fund and $$120,000$ in a T$-$bill money market fund. What is the reward$-$to$-$volatility $($Sharpe$)$ ratio for the equity fund? $($Round your answer to $4$ decimal places.$)$

Reward$-$to$-$volatility Ratio