Question: Suppose that the borrowing rate that your client faces is 8%. Assume that the equity market index has an expected return of 10% and standard

 Suppose that the borrowing rate that your client faces is 8%.

Suppose that the borrowing rate that your client faces is 8%. Assume that the equity market index has an expected return of 10% and standard deviation of 30%. Also assume that the risk-free rate is rf=34. Your fund manages a risky portfolio, with the following detalls: E(rp)=114,p=17% What is the largest percentage fee that a client who curfently 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

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