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 ry 4% Your fund manages a risky portfolio, with the following details: E(rp) - 12%, Op. 18% What is the largest percentage fee that a client who currently is lending (y 17 (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) y 1 95 96

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