Question: Suppose that the borrowing rate that your client faces is 11%. 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 11%.

Suppose that the borrowing rate that your client faces is 11%. Assume that the S&P 500 index has an expected return of 14% and standard deviation of 24%. Also assume that the risk-free rate is le= 6%. Your fund manages a risky portfolio, with the following details: Elrp) = 14%, 0,= 22%. What is the largest percentage fee that a client who currently is lending ly 1)? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

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