6. Assume you manage an equity fund with an expected return of 12% and a standard deviation of 30%. The return on Treasury bills is 4%.

(a) Client 1 invests $40,000 in your portfolio and $60,000 in T-bills. Compute her expected return, standard deviation, and Sharpe ratio.

(b) Client 2 invests $7,500 in your portfolio and $2,500 in T-bills. Compute her expected return, standard deviation, and Sharpe ratio.

(c) Client 3 invests $5000 in your portfolio and nothing in T-bills. Compute her expected return, standard deviation, and Sharpe ratio.