Question: Suppose that the borrowing rate that your client faces is 6%. Assume that the equity market index has an expected return of 9% and standard

Suppose that the borrowing rate that your client faces is 6%.

Suppose that the borrowing rate that your client faces is 6%. Assume that the equity market index has an expected return of 9% and standard deviation of 31%. Also assume that the risk-free rate is rf=3%. Your fund manages a risky portfolio, with the following details: E(rp)=12%,p=17%. What is the largest percentage fee that a client who currently is lending (y1) ? Note: Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal place. Answer is complete but not entirely correct

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