11. Assume that you manage a risky portfolio with an expected rate of retum of 12% and a standard deviation of 30%. The T-bill rate is 4%. Your client chooses to invest 60% of a portfolio in your fund and 40% in a T-bill money market fund. a. What is the reward-to-volatility ratio (Sharpe Ratio) of your client's portfolio? b. If the client wants to have a standard deviation of only 9%, what portion of the client's find should be in the risky portfolio? In that case, what is the expected retum on the fund? 12. The MoMi Corporation's cash flow from operations before interest and taxes was $5 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 12% of pretax cash flow cach year. The tax rate is 25%. Depreciation was $500,000 in the year just ended and is expected to grow at the