Question: Suppose that the borrowing rate that your client faces is 9%. Assume that the S&P 500 index has an expected return of 14% and standard

Suppose that the borrowing rate that your client faces is 9%. Assume that the S&P 500 index has an expected return of 14% and standard deviation of 22%. Also assume that the risk-free rate is rf = 6%. Your fund manages a risky portfolio, with the following details: E(rp) = 12%, p = 15%.

What is the largest percentage fee that a client who currently is lending (y y > 1)?

Suppose that the borrowing rate that your client faces is 9%. Assume

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