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ii) You manage a risky portfolio with expected rate of return of 10% and standard deviation of 20%. The risk free rate is 5%. a.
ii) You manage a risky portfolio with expected rate of return of 10% and standard deviation of 20%. The risk free rate is 5%. a. You have a client that wants to invest 60% in your risky portfolio and 40% in the risk free asset. What is the expected value and standard deviation of the return of the client s portfolio? b. What is the reward-to-volatility ratio of the clients portfolio?
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