Intro

You are managing a portfolio with a standard deviation of $36\%$ and an expected

return of $20\%.$ The Treasury bill rate is $9\%.$ A client wants to invest $23\%$ of his

investment budget in a T$-$bill money market fund and $77\%$ in your portfolio.

Part $1$

What is the expected rate of return on your client's complete portfolio?

Part $2$

What is the standard deviation for your client's complete portfolio?

Part $3$

What is the reward$-$to$-$volatility $($Sharpe$)$ ratio of your client's complete portfolio?

Part $4$

What is the Sharpe ratio of your portfolio?