What follows is a numeric fill in the blank question with 5 blanks. You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? a. Expected return for equity fund: Blank 1. Fill in the blank, read surrounding text. %. b. Expected rate of return of the client’s portfolio: Blank 2. Fill in the blank, read surrounding text % c. Expected Return of the client's portfolio: $ Blank 3. Fill in the blank, read surrounding text.
What follows is a numeric fill in the blank question with 5 blanks.
You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill
a. Expected return for equity fund: Blank 1. Fill in the blank, read surrounding text. %.
b. Expected
c. Expected Return of the client's portfolio: $ Blank 3. Fill in the blank, read surrounding text.
d. The standard deviation of the client's overall portfolio: Blank 4. Fill in the blank, read surrounding text. % (Round to one decimal place.)
e. Calculate the Sharpe ratio for the equity fund: Blank 5. Fill in the blank, read surrounding text. (Round to TWO decimal places.)
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