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5. Suppose you manage a risky portfolio with an expected return of 17% and a standard deviation of 27%. Your client chooses to invest 70%
5. Suppose you manage a risky portfolio with an expected return of 17% and a standard deviation of 27%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. The T-bill rate is 7%. 1) What is the expected return and standard deviation of your client's portfolio? 2) What is the Sharpe ratio (S) of your risky portfolio and your client's overall peortfaolien
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