Question: Suppose that the borrowing rate that your client faces is 10%. Assume that the equity market index has an expected return of 15% and standard
Suppose that the borrowing rate that your client faces is 10%. Assume that the equity market index has an expected return of 15% and standard deviation of 21%. Also assume that the risk-free rate is pf = 4%, Your fund manages a risky portfolio, with the following details: EC). 12%, Op. 18% What is the largest percentage fee that a client who currently is lending IV 1)? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) ly
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