Question: Suppose that the borrowing rate that your client faces is 9 % . Assume that the equity market index has an expected return of 1

Suppose that the borrowing rate that your client faces is 9%. Assume that the equity market index has an expected return of 14% and
standard deviation of 21%. Also assume that the risk-free rate is rf=6%. Your fund manages a risky portfolio, with the following details:
E(rp)=11%,p=17%.
What is the largest percentage fee that a client who currently is lending (y1) will be willing to pay to invest in your fund? What about a
client who is borrowing )?(Negatlve values should be Indleated by a minus sign. Do not round Intermedlate calculations.
Round your answers to 2 decimal places.)
Suppose that the borrowing rate that your client faces is 9%.

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