Question: Suppose that the borrowing rate that your client faces is 12%. Assume that the equity market index has an expected return of 14% and standard

Suppose that the borrowing rate that your client faces is 12%. Assume that the equity market index has an expected return of 14% and standard deviation of 23%. Also assume that the risk-free rate is xf=61. Your fund manages a risky portfolio, with the following details: E(xp)=132,p=24t. What is the largest percentage fee that a client who currently is lending (y1) ? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

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